Bitcoin’s halving has come and gone. Many people waited with bated breath for a sudden spike in price, which didn’t happen. In fact, immediately after halving, prices dipped a little, possibly as a result of miners selling off. However, since then Bitcoin has made steady progress upwards, sitting just above $9,800. Although not back up to the highs of $10k just over a week ago, price momentum looks bullish, suggesting there is still plenty of potential for the cryptoasset to rise even higher.
Many of the more bullish cryptoasset analysts were looking for huge jumps in price post halving, but this is a fundamental misunderstanding of the long-term nature of Bitcoin as an investment. As I’ve said before, I believe the halving precipitates a long bull run in Bitcoin, one which may see highs of $100,000 – $120,000 within 18 months. Of course there is always the possibility that it may drop, but this would be likely due to another black swan event such as a worsening of the Covid-19 pandemic, at which point other investable assets would be impacted as well.
So how have miners been affected by the halving? They will have seen their revenues drop dramatically. Pre-halving total revenue from miners was sitting at $17 to 18 million per day. Now total mining revenue is around $7 million, even with the rise in Bitcoin prices. It’s definitely something to keep an eye on, as often these revenues are indicative of the health of the wider cryptoasset sector.
And to show that what happens in the cryptoasset sector does have a wider impact, Nasdaq-listed ASICs manufacturer Canaan has seen a good run in its stock performance over the past few weeks as miners upgrade their kit.