The mining sector is collapsing as the Bitcoin halving draws near, which has led to an unexpected drop in the prices of stock. High-level executives are still bullish about Bitcoin’s prospects and growth potential.
The second Bitcoin halving ought to occur around April 20, and it will reduce mining incentives to 3.125 BTC, a 50% decrease. At current prices, this quantity of Bitcoin is equal to about $200,000.
Global Bitcoin Halving Fallout: Non-US. Miner Stocks Plummet
The stocks of Riot Blockchain (RIOT) and Marathon Digital ( MARA), which are crucial to Bitcoin mining, have seen a significant price decline. Based on the data from Google Finance, BTC is down between 53% and 54% from its peak in February of this year.
The stock price of CleanSpark (CLSK) surged to $23.40 on March 25, the highest level in three years. But now it is down by 38.1 to $14.48. Despite the decline, it is still up about 250% for the year.
This month, there has been a 28% decline in the Valkyrie Bitcoin Miners exchange-traded fund (ETF).
The non-US companies that trade on Nasdaq, Bitdeer Technologies (BTDR) from Singapore, and Iris Energy (IRIS) from Australia, have experienced significant declines. They fell by about 40.88% and 47.6% since they reached their highest points this year in mid-February.
A rise in political tensions over the weekend has made investors more cautious.
Miners Bullish on Bitcoin’s Future Growth
According to Bloomberg, the CEO of the Bitcoin mining company maintains a bullish outlook despite these difficulties. He claims that increasing demand for cryptocurrency, improving equipment, and managing their business at a low cost can offset the $10 billion in revenue they expect to lose due to the halving.
The new spot Bitcoin ETFs might increase demand for Bitcoin, which would raise its price and neutralize the negative consequences of the halving. Bitcoin’s popularity has increased since major corporations began offering ETFs for ordinary investments in January. Also for traditional crypto investors, these funds are getting a lot of money from a wide range of investors.
When Bitcoin was trading at about $40,000 in late January, Cantor Fitzgerald said that 11 mining businesses might struggle to turn a profit following the halving.
The founder of Hashlabs Mining, Jaran Mellerud, stated that American miners may need to move or expand their business to foreign nations where electricity is less expensive if Bitcoin doesn’t continue to rise after the halving.
