The upcoming Bitcoin halving will lead to a surge in box office revenue for exchanges and ETFs, while miners and rival cryptocurrencies are bracing for tough times ahead.
Bitcoin enthusiasts who have been involved in the cryptocurrency for years are set to reap the benefits of the halving. With only 450 new BTC entering circulation each day, long-time investors are in for a windfall. Those who have held onto their Bitcoin since the first halving in 2012 have seen a staggering 502,693% increase in their investment. Exchanges like Robinhood and Coinbase are also poised to profit from increased trading volumes and fees, with their stock prices on the rise.
ETFs based on Bitcoin’s spot price have gained approval in the U.S. and are driving BTC to new all-time highs. BlackRock’s iShares Bitcoin Trust has emerged as a leader in this competitive market, with $17.1 billion in assets under management. Michael Saylor, the founder of MicroStrategy, is another winner of the halving, having amassed a significant amount of BTC on the company’s balance sheet.
However, miners are facing a bleak future as their rewards are set to halve from 6.25 to 3.125 BTC per block. This sharp decline in income may make mining unprofitable for some, leading to stock price declines for major mining companies. Bitcoin’s dominance in the market has increased at the expense of other cryptocurrencies, with investors showing a preference for the leading digital asset.
Analysts are divided on where Bitcoin’s price will go next, with predictions ranging from a slump to $42,000 to a rally to $150,000. As the year progresses, it will become clear which forecasts were accurate and which missed the mark.