After plummeting below $60,000 yesterday, Bitcoin has recovered to $65,000 amid the final volatility ahead of the next halving.
The Bitcoin halving is currently scheduled to take place late Friday night or early Saturday morning, depending on your geographic location. If that happens, the reward paid to a Bitcoin miner for processing transactions on the network will automatically be cut in half from his 6.25 BTC to 3.125 BTC.
While the past three halving events have famously started a bull run in Bitcoin (the world’s oldest and largest cryptocurrency by market capitalization), halvings also tend to cause some volatility. As of this writing, Bitcoin price is hovering around $64,740, up 4.6% from this point yesterday.
What’s even more impressive is that BTC is up 8% from its Thursday afternoon low of $60,022 and is just shy of reaching $65,000 earlier today. CoinGecko.
But for Bitcoin derivatives traders, the volatility was hell. According to the company, $293 million worth of futures positions have been liquidated since Thursday. coin glass. This does not include the $255 million that was liquidated when Bitcoin plummeted on Wednesday, or the more than $1.5 billion that was liquidated last Friday and Saturday.
“It took almost two months for the price to move in a negative way,” said Jere, a trader using a pseudonym. on Twitter“But the bubbles and greed have been cleansed from my system. I’m ready for the next leg high.”
Ki Yong-joo, founder and CEO of Cryptocurrency, pointed out that investors who managed to save money through the ups and downs have reaped handsome profits. on Twitter. The biggest beneficiaries are, unsurprisingly, the old whales who filled up their bags of Bitcoin years ago. However, large and small Bitcoin miners also made significant gains of 81% and 131%, respectively.
In addition to revenues that will soon be cut in half, Bitcoin miners now face competition for the hardware and power they need to operate. The AI boom is creating huge demand for the same resources that miners need.
“Bitcoin ASIC chips have had to compete with strong demand for AI chips this cycle,” Bernstein analysts said in a recent report, “so manufacturers have been forced to compete with cash-rich miners for funding.” “They are becoming more enthusiastic about bulk contract/purchase options.” .
