The upcoming “Halving” event for Bitcoin, which reduces the amount of Bitcoin miners can earn, is causing concern among some miners. The event has historically led to increases in Bitcoin’s price, but this time it could spell trouble for less efficient mining operations. The break-even electricity price for mining machines is expected to drop, but around 40% of miners still have higher operating costs. The total cost for certain miners is well above Bitcoin’s current price, and net profits could turn negative for many miners. The global mining industry is facing a challenging environment due to rising competition, increasing electricity costs, and significant debt. Bitcoin miners are taking measures like locking in power prices and cutting back on investments in preparation for the Halving. However, JPMorgan Chase & Co. strategists expect the Halving to double Bitcoin’s production cost, potentially driving many miners out of the market.
AI Sentiment: Negative