Rally

Bitcoin

April

Optimism

Industry experts are optimistic about Bitcoin's market performance post-<a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/" rel="noopener noreferrer nofollow">halving</a>. Bitcoin mining has been in the spotlight since the recent halving in April 2024. Typically, miners struggle post-halving as mining rewards are cut, reducing profitability. However, several insiders believe a Bitcoin price rally is imminent. Sascha Grumbach, CEO of Green Mining DAO, stated that miners expect a price rally "within three to six months after each halving event." according to <a href="https://www.ledgerinsights.com/dlt-friendly-asset-manager-azimut-invests-e105-million-in-alps-blockchain/" rel="noopener noreferrer nofollow">Ledgerinsights</a>.
Despite expectations of selling to sustain operations, major mining firms are holding their Bitcoin stash. Bitwise’s Q2 report shows that the five largest mining firms sold only 2,000 BTC in Q1 2024, the lowest in two years, compared to over 7,000 BTC in Q4 2023. This trend continued, with little to no selling activity. Institutional interest followed the introduction of Bitcoin exchange-traded products in the U.S., which amassed $17.71 billion by July 29, 2024. Grumbach told crypto.news, "Institutional investments validate Bitcoin's value and potential, increasing demand and price stability. Miners prefer to accumulate, anticipating a more favorable market."
Jonathan Hargreaves, global head of business development &amp; ESG at Elastos, noted a similar sentiment among miners, stating, "Our merge miners believe the market will experience a significant upward surge. They're holding onto positions until the market moves." However, smaller miners face challenges. Post-halving market conditions, increasing mining difficulty, and operational costs compel smaller miners to sell Bitcoin. CryptoQuant's head of research, Julio Moreno, highlighted this trend, noting some miners cease operations.
Loka Mining CEO Andy Fajar Handika observed that newer mining companies, unprepared for volatility, were most affected. Some turned to less competitive alternative markets like artificial intelligence, leveraging existing infrastructure. Despite challenges, July saw an improvement as miners returned to profitability. A <a href="https://www.bitfinex.com/sign-up?refcode=r-qv3hyl7" rel="noopener noreferrer nofollow">Bitfinex</a> Alpha report indicated that miners who survived post-halving stress used newer, more efficient machines, boosting profit margins. Bitcoin's <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">hashrate</a>, which slumped during the 2021 <a href="https://ultramining.com/news/en/immersion-cooling-transforms-chinas-crypto-mining-landscape/" rel="noopener noreferrer nofollow">China</a> mining ban, improved, according to Matrixport.
President Donald Trump's plans to add Bitcoin as a national reserve asset and calls for U.S. leadership in Bitcoin production act as bullish catalysts for the industry. Companies like <a href="https://ultramining.com/news/en/marathon-digital-to-boost-energy-efficiency-with-s19-xp-miners/" rel="noopener noreferrer nofollow">Marathon</a> Digital Holdings strengthened reserves, adding $100 million worth of Bitcoin in July, showing market confidence. Other top miners also held reserves, indicating a broader pattern of accumulation among industry leaders. Riot, for example, hasn't sold Bitcoin since January, while <a href="https://ultramining.com/news/en/cleanspark-doubles-down-on-bitcoin-mining-with-55m-expansion/" rel="noopener noreferrer nofollow">CleanSpark</a> sold only small portions.
Loka Mining's Handika expects miners to continue accumulating with "limited selling pressure" near Bitcoin's next all-time high. Hargreaves anticipates selling pressure at around $125,000 per Bitcoin, an 86% surge from Bitcoin's current price of $66,928. The timing depends on price growth speed, possibly by the end of the year or into 2025. Grumbach highlighted that Bitcoin's recent trading volume dwarfs new mining output, making it relatively insignificant, so short-term selling pressure from miners is unlikely.

Bitcoin Miners Expect Price Rally Amid Market Optimism

Ultramining_Eng

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