CoinShares report: Will Bitcoin miners affect BTC price?

CoinShares stated that the cost of Bitcoin (BTC) miners will increase from $25,000 to $37,800 after the halving.

The progress of the cryptocurrency market with the spot Bitcoin ETF agenda has had a great repercussion. While the bull run is thought to have begun, all eyes are on the crypto developments that will take place in 2024. One of the most important crypto developments that will mark this year will be the Bitcoin halving. The Bitcoin block reward will drop to 3,125 BTC.

Although the Bitcoin halving is something that excites investors, it worries Bitcoin miners. CoinShares' report on Bitcoin miners included remarkable data. Can Bitcoin miners sell BTC before the halving?

Bitcoin miners and halving

CoinShares has published a comprehensive report covering the cost of Bitcoin miners. The report touched on the impact of the expected Bitcoin halving on miners.

CoinSharesIn the research report, it was stated that in the third quarter of 2023, the cost of Bitcoin miners increased from $16,800 to $25,000. Miners had a very lucrative period in 2023 with the increase in the price of BTC and the hype created by Ordinals. Miners scraped BTC at a cost of $25,000. Bitcoin miners, who have reached a large profitability rate, focused on the Bitcoin halving that will take place in 2024.

CoinShares stated that the cost of Bitcoin miners will increase after the halving, which is expected to take place in April. According to the report, the cost of Bitcoin mining after the halving will increase to $37,800, respectively.

The report stated that the post-halving will put a strain on those at the top of the cost curve. Miners who cannot mine BTC with a cost of 25 thousand dollars in 2023 may have problems in the cost/gain parameter after the halving that will take place in 2024. According to CoinShares, miners with ample liquidity will have the opportunity to purchase discounted hardware.

CoinShares also highlighted that several factors can occur, such as a significant price drop or a decrease in the use of Ordinal. Bitcoin miners will receive less revenue after the halving and capital expenditure cycles will be affected. There may also be an increase in mining difficulty due to an influx of Bitcoins pushing mining platforms to higher production costs.

"Most miners will face challenges stemming from their high costs and will need to reduce costs to remain profitable Only a handful of miners are expected to operate profitably if the price of Bitcoin remains at $40,000," CoinShares said in a report.

According to the report, the BTC price should be traded close to $50,000 for Bitcoin miners to maintain their profitability after the halving. If this does not happen, it seems likely that miners who cannot make a profit will sell their BTC and try to reduce costs.

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