Key Points
- Crypto analyst PlanB says that Bitcoin miner revenue recovers 2 to 5 months post-halving, according to history.
- He also says that Bitcoin’s price goes vertical after that.
Popular crypto analyst PlanB revealed on his X account that historically, Bitcoin miner revenue recovers from two to five months after the Bitcoin halving takes place.
He notes that after we see the Bitcoin miner revenue recover, we will also witness BTC’s price going vertical.
Adam Back commented and said that PlanB’s prediction makes sense, whether it’s cause or effect, because with higher miner profitability, there is even less selling, so the market can feel the full force of the halving supply shock.
Back is a British cryptographer and cypherpunk. He is the CEO of Blockstream, which he co-founded in 2014. He invented Hashcash, which is used in the Bitcoin mining process.
At the moment of writing this article, BTC is trading close to $62k, down by about 2% in the past 24 hours on CoinMarketCap.
- Zoom
- Type
Bitcoin continues to maintain the important level of $60k.
The Bitcoin miner revenue was at $197.76 million on halving day, April 20. The other day, May 13, the Bitcoin miner revenue was $30.36 million, according to data coming from YCharts.
Bitcoin hash rate drops following the halving
Bitcoin’s hashrate dropped following the halving event which took place on April 20.
Bitcoin’s hash rate is a measure of the network’s processing power, and it has experienced a drop as mining firms began to shut down unprofitable mining rigs following the fourth halving.
The hash rate fell to a low of 575 exahash per second (EH/s) on May 10 before recovering slightly to 586 EH/s.
This decrease can be attributed to miners turning off their unprofitable rigs. This was a trend that has been highlighted in a May 13 report by James Butterfill, the head of research at CoinShares.
He also shared the results via his X account.
Miners are beginning to turn off unprofitable rigs
We write about it here in detailhttps://t.co/8tSQKDY5lk pic.twitter.com/498SvO01Bz
— James Butterfill (@jbutterfill) May 13, 2024
A shift towards AI for higher revenues
In his official blog post on CoinShares, he noted that he is expecting a shift towards AI in energy-secure locations due to the potential for higher revenues.
He says that companies such as BitDigital, Hive, and Hut 8 are already generating income from AI. This is a trend that suggests that Bitcoin mining could increasingly move to stranded energy sites where investment in AI grows at more stable locations.
It’s been also reported that TeraWulf, BitDigital, and CoreScientific all have current AI operations or AI growth plans.
Butterfill also notes that substantial cost increases are expected due to the halving, with electricity and overall production costs nearly doubling.
Key mitigation strategies, according to him, include the following:
- optimizing energy costs
- increasing mining efficiency
- securing favorable hardware procurement terms
Miners are actively managing financial liabilities, and some are using excess cash to reduce debt significantly, according to the post.
