Bitcoin needs to hold above $80,000 for mining to remain profitable after the halving
In order for miners to remain profitable and continue their mining operations, the price of BTC must rise above $80,000 after the halving.
According to data from DOOKV CEO, the current cost of mining will rise from $40,000 to $80,000 after Bitcoin's halving in mid-April.
Bitcoin's halving is a significant event that occurs every 210,000 blocks or roughly every four years. The halving event halves the block reward earned by miners.
In addition to indirectly impacting the price of Bitcoin , the halving event significantly impacts miners' behavior, as mining costs double to earn the same amount of BTC.
After the May 2020 halving, the price for miners to continue mining profitably rose to over $30,000, but the price of BTCalso increased to a new all-time high of $69,000 during the same cycle.
The average cost of mining Bitcoin as of April 6 is $49,902, and the price of BTC is above $70,000 at the time of writing. After the halving on April 20, average mining costs will rise to over $80,000, and for miners to continue operating profitably, the price of BTC must trade above this price.
Historically, BTC prices have seen a multiple jump in price after the halving. After the 2012 halving, Bitcoin's price increased by about 9,000% to $1,162.
After the 2016 halving, Bitcoin's price increased by about 4,200% to $19,800, and after the 2020 halving, Bitcoin's price increased by nearly 683% to $69,000.
Thus, miners remained profitable despite fears of going bankrupt after each halving. Halving events also make several mining machines obsolete as they are unable to compete with the high demand for hashing power.
