Bitcoin Miners Have Raked in Abnormal Transaction Fees Since Halving: Bernstein
The spike in network fees was driven by speculative activity to mint new meme tokens following the launch of the Runes protocol, the report said.
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The spike in network fees was driven by speculative activity to mint new meme tokens following the launch of the Runes protocol, the report said.
Bitcoin’s rally in the past six months will help cushion crypto miners from the effects of the 50% cut in their earned rewards, the report said.
Miners face uncertain times as the halving changes Bitcoin’s economics. Which groups are best positioned for the future? Dan Weiskopf, at Tidal Financial Group, gives a run-down.
The broker cut its price target to $14 from $17.50 while maintaining its buy rating.
If history repeats itself, an even more bullish period for bitcoin and crypto markets could be on the horizon in the months following the halving, the report said.
As the protocol evolves, new layers could emerge bringing new use cases and more users, the report said.
The number of bitcoin held in wallets tied to miners has dropped to the lowest since mid-2021.
The cryptocurrency has performed well before the halving and is likely to sustain momentum for the rest of the year, leading to new highs in 2024, the report said.
CryptoQuant data shows that miners are moving bitcoin to exchanges, likely because of a need to build more liquidity in anticipation of higher capital expenditures.
Larger miners with a low cost of production and low debt are likely to be the big beneficiaries of increased capacity, the report said.