Cryptocurrency miners are hoarding vast amounts of Bitcoin in the hope that the token will rise in value ahead of Friday’s (April 19) supply cut.
Listed miners which include the likes of Bitfarms, CleanSpark and Marathon Digital have stockpiled to the tune of around $2.8Billion. This is according to the data provider The Miner Mag.
Miners from across the globe are set to share a total of 450 new bitcoins daily – down from 900. This comes after the verification of the latest transactions in bitcoin.
Hedging against inflation is the main priority with various hedge funds typically betting against listed crypto miners. Share prices have dropped and ‘halving’ is deemed to have affected their profitability.
Bitcoin Halving
Professor of finance at the University of Southampton, Larisa Yarovaya explained: “Mining companies are playing a constant game of chicken with each other.
“It’s a business model that’s based more than ever on faith that bitcoin’s price will go up and demand for it will grow, she added.”
All in all, miners are holding on to 46,200 coins. This is the highest amount in two years. Crypto executives and traders are wagering that the value will increase later in the year.
This trend is typical when the bitcoin ‘halving’ process occurs but 2024 is different. The cryptocurrency has already hit a new record high, before halving has taken place.
Therefore, with the rewards being cut in half, everyone needs bitcoin to increase in value. In mid-March, a record high of $73,800 was reached. This week, it had dropped over 14% to $60,000.
Furthermore, there is additional scrutiny around the halving event which could have an indirect effect on its future regulation.
Natalia Latka, who is the policy director at blockchain analysis firm Merkle Science is in agreement. Miners will also be hopeful of increased activity on the bitcoin network to boost transaction fee revenue.
Whatever happens on Friday, all will become much clearer after the bitcoin halving process. Many will be quietly confident of an increase in value with the second half of 2024 on the horizon.
Read More: The 15 Best Bitcoin Gambling Sites 2024 With Crypto Gambling Bonuses.
