Markets News Report Technology
May 15, 2024

Bloomberg: Post-Halving Consolidation Phase Before Bitcoin Reclaims Its All-Time High Begins

In Brief

Jamie Coutts notes that ‘halving crunch’ for Bitcoin miners has ended and current stage may take some time before BTC can reclaim its ATH.

Bloomberg: Post-Halving Consolidation Phase Before Bitcoin Reclaims Its All-Time High Begins

Cryptocurrency market analyst at Bloomberg Intelligence, Jamie Coutts noted that the ‘halving crunch’ for Bitcoin miners has concluded. According to Jamie Coutts, the current stage is the post-halving consolidation phase, which may take some time to resolve before Bitcoin can reclaim its all-time high (ATH).

In the previous cycle, Bitcoin miners began to outperform Bitcoin itself about six months after the halving. However, this outperformance was brief, lasting only 3 to 4 months, and was not uniformly distributed. Comparing equal-weighted and market capitalization-weighted baskets from the 2020 cycle, and larger capitalization names doubled Bitcoin’s performance during that short period.

The analyst also observed that this size trend has continued in the current cycle, with larger-capitalization names showing year-over-year gains while smaller names have declined. The industry appears to be consolidating, and this relative strength is significant. When the market resumes its uptrend, it may be more advantageous to focus on the leading companies rather than the lagging ones, the analyst concluded.

April’s Bitcoin halving event, which reduced mining rewards from 6.25 BTC to 3.125 BTC as programmed long ago, created a distinct challenge for miners striving to meet their operational costs. In recent weeks, both mining rewards and transaction fees—two primary revenue streams for miners—have been yielding more modest returns for miners. 

Bitcoin Rises Above $64,000 As Stock Futures Rise After Release Of United States Consumer Price Index (CPI) Report

Currently, Bitcoin is trading above $64,000, showing an increase of over 4.5% in the past 24 hours, according to CoinMarketCap data. The rebound aligns with a rally in major equities, following the release of cooler United States Consumer Price Index (CPI) data for April which showed a year-over-year increase of 3.4%, which is slightly lower than the 3.5% rise seen in March.

Stock futures increased following the latest CPI report, which indicated an easing of inflation consistent with economists’ expectations. In pre-market trading, the Nasdaq Composite rose by 0.81%, and the NYSE Composite saw an increase of 0.48%.

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About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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