Bitcoin
Cryptocurrency prices rise at the beginning of the week after Bitcoin’s first halving since 2020
Nicolas Economou | Nurfoto | Getty Images
Bitcoin rose slightly to start the week after the net on Friday completed its fourth halvingwhich reduces the incentives paid to bitcoin miners.
The cryptocurrency’s price last rose 2.86% to $66,560.39, according to Coin Metrics. Ether rose 1.24% to $3,187.67.
Shares of public cryptocurrency miners rose, after rising at the close on Friday ahead of the halving, which took place later that day. The biggest miners, Digital Marathon jumped 6% while Riot Platforms increased by 23%. CleanSpark It is Iris Energy increased by about 11% each.
Bitcoin Halving reduces incentives granted to miners halving and occurs once every four years, as required in the Bitcoin code. The aim is to slow down the issuance of bitcoins, creating a scarcity effect and allowing the cryptocurrency to maintain its gold-like digital quality.
Many investors expected little bitcoin price action around the halving, as it has historically taken several months to see its impact reflected in the bitcoin price. JPMorgan, however, said it sees some near-term downside risk in bitcoin.
Large publicly listed bitcoin mining operations are largely positioned to absorb the event. They have been preparing for months, placing large orders to purchase new and more efficient mining equipment, increasing their electrical capacity and increasing their hash rates. Hash Rates measure the computational efficiency of crypto miners.
Smaller, less efficient operations risk being forced offline, allowing remaining miners to gain more market share and opening up opportunities for mergers and acquisitions.