Experts are warning that the 2024 Bitcoin halving could be detrimental to crypto miners. Higher mining costs are expected to impact a significant number of miners, particularly those with less efficient operations and higher operating costs. The break-even electricity price for mining is predicted to decrease, leaving many miners facing difficulties staying profitable. Miners are migrating from China to North America, where debt financing is more readily available. Rising competition among Bitcoin miners and the anticipation of the halving has led miners to implement strategies such as locking in power prices and reducing investment activities. Despite these preparations, many miners are expected to be driven out of the market. Maintaining profit margins after the halving will require Bitcoin’s price to reach $50,000-$60,000.
AI Sentiment: Negative