Cryptocurrency Bitcoin has been moving within a price range recently, causing investor boredom. Occasionally, predictions about the direction of price movements emerge. Especially after the halving, where the price will go is a matter of curiosity. Additionally, since miners’ income has decreased, the market is curious about what miners will do next. PlanB, the creator of the stock-to-flow model in Bitcoin, made evaluations on the subject.
PlanB Talks About Miners’ Revenue
In the cryptocurrency market, almost everyone expresses opinions about what Bitcoin miners’ revenue will be after the halving. It is already known that revenues will decrease due to the halving of mining rewards. However, the noteworthy point here is whether there will be a recovery.
According to PlanB, Bitcoin miners’ revenue historically recovers after the halving. This recovery process takes approximately 2-5 months. After the recovery, an interesting pattern emerges related to Bitcoin’s price. PlanB states that after the recovery of Bitcoin miners’ revenue, Bitcoin’s price goes into a vertical rise.
Adam Back Emphasizes Miner Profitability
Contributing to PlanB’s statements, Adam Back emphasizes that regardless of the cause or effect, these statements are logical because as miner profitability increases, sales decrease. According to Adam Back, the market feels the full force of the halved Bitcoin supply shock.
There were previous comments about an expected supply shock in Bitcoin after the halving. At this stage, we have not yet felt a supply shock. Because if Bitcoin experiences a supply shock, determining the direction of the price of the flagship of cryptocurrencies, BTC, will become extremely difficult. If the price of Bitcoin reaches $100,000 and beyond, we can then talk about the existence of a supply shock.
Additionally, in addition to PlanB’s statements, since the Fed‘s interest rate cuts are expected to come into play during the mentioned period, it seems likely that Bitcoin’s price will move upwards. In such a scenario, Bitcoin miners will easily cover their costs, and the reflections of the revenue recovery will be seen very easily.
