By
Josh O'Sullivan
April 30th, 2024
Blockware Solutions analyst Mitchell Askew believes the upcoming Bitcoin halving event will turn out to be a buy-the-news event.
The Bitcoin halving 2024 event is less than three days away, with only 2,375 BTC remaining to be mined until the next block half. Trading around $63,492 on Wednesday, Bitcoin price has been retesting the lower border of the horizontal consolidation range between $61,400 and $72,000.
The recent Bitcoin price drop has also impacted the crypto-related mining stocks, amid concerns of profitability post-halving.
Bitcoin Mining-Related Stocks Dips
Despite the impressive Bitcoin performance in the first quarter, Marathon Digital Holdings Inc (NASDAQ: MARA) stock has dropped more than 34 percent in the past four weeks to trade around $14.74 on Wednesday. Riot Platforms Inc (NASDAQ: RIOT) stock has fallen over 47 percent YTD to trade around $8.14 at the time of this report.
Similarly, CleanSpark Inc (NASDAQ: CLSK) shares dropped 28 percent in the past four weeks to trade at about $14.75. Bitdeer Technologies Group Technologies Group (NASDAQ: BTDR) stock dropped around 35 percent in the last month to trade at about $5.55 on Wednesday.
Australia-based Bitcoin mining firm Iris Energy Ltd (NASDAQ: IREN) stock has dropped over 39 percent YTD to trade around $4.44 at the time of this writing. Canadian-based Bitfarms Ltd (NASDAQ: BITF) stock has dropped more than 41 percent YTD to trade around $1.75 on Wednesday.
New York-based Cipher Mining Inc (NASDAQ: CIFR) stock declined around 26 percent in the last month to trade around $3.45 at the time of this report. Bit Digital Inc (NASDAQ: BTBT) shares have dropped over 56 percent YTD to trade around $1.87 on Wednesday.
Unsubstantiated Post-Halving Fears
According to Mitchell Askew, a top analyst at Blockware Solutions, the upcoming Bitcoin halving event will turn out to be a buy-the-news event. Notably, Askew was addressing the state of the market which seems to be preparing for a further dip amid the ongoing Middle East crisis and the conflict between Russia and Ukraine.
“The halving will be a ‘buy the news’ event for public Bitcoin miners and the private ASIC market,” Askew noted.
As a result, Askew expects a general rebound of crypto-mining stocks in tandem with Bitcoin prices in the coming weeks. Meanwhile, Jaran Mellerud, founder and chief mining strategist of Hashlabs Mining, indicated that some US-based Bitcoin miners could expand overseas in search of cheaper electricity costs after the halving event.
Halving Price Action
As Coinspeaker reported, Bitcoin and the entire crypto prices have been reacting to the macroeconomic outlook, especially on the United States inflation issue. According to a popular crypto analyst Michael van de Poppe, Bitcoin price has already established a local top and is likely to consolidate in the range before continuing with the prior bullish trend.