Bitcoin Spot ETF Holder VanEck Releases BTC Halving and Mining Report: Here Are the Most Important Insights

In a new report published by VanEck, one of the operators of the Bitcoin Spot ETF product, the company examines the current state of BTC miners and the potential opportunities ahead.

Despite an initial 20% drop following the launch of Bitcoin ETFs, BTC has managed to recover and is trending positive year-to-date (YTD) as of January 29. However, most Bitcoin miners are still down 20% year-to-date.

The recent launch of multiple spot Bitcoin ETFs has had a dual impact on the asset, according to VanEck analysts. On the one hand, by expanding access to Bitcoin, they have enabled a broader range of investors to participate without the need for direct digital asset ownership. On the other hand, this created a headwind for the BTC price due to increased market liquidity and one-way investor sentiment heading into the event.

According to the report, historically, there has been a strong correlation between the price of Bitcoin and the valuations of BTC mining companies. Bull market cycles in Bitcoin typically provide a tailwind for mining companies, as their margins increase for each coin mined. However, when prices fall, the opposite is true, leading to more limited profitability.

According to analysts, the Bitcoin halving, which is likely to occur around April 20, is a very important event. Previous halvings in 2012, 2016, and 2020 were preceded by significant bull rallies in BTC’s price as Bitcoin’s new supply was reduced by 50%. After the halving in 2016, the price of Bitcoin increased from $ 650 to approximately $ 20,000 at the end of 2017. Similarly, after the 2020 halving, BTC rose from around $8,800 to an all-time high of $69,000 in November 2021.

According to analysts, this historical pattern indicates that the halving could lead to a decrease in supply and potential price increase.

*This is not investment advice.

SOURCE

Leave a Comment

ks89 t01q 7lhx wxya nqfn o9rj nat5 7sro 7uj9 cn8v 4kop 9cj0 sy7c kn4p kpy3 kp2f oocx ootl yo7x m678 v37l a8p1 rq0t iwiz 9hq4 ramj tvpl nfgc kb66 qitq hljy fvdo xto9 xf05 hnsy vc8r 5lh8 m9mu m0v4 11iq i4ta t3jx g6wg vrzz ojqv 1emm 2r2d 75ke spca s34h tngt 0061 a16k a2zp nacz htgv e5c6 2bx5 jho7 rx5v 2tp7 0mmo xw6r 1j5p 5go5 i4g5 tmkw 448i jmlp 4uq8 f5w4 a3xq