Bitcoin price is close to historical peak

Bitcoin price is close to historical peak Picture 1

According to data from CoinMarketCap , Bitcoin has been continuously being gathered by investors since the beginning of April. Faced with increased demand, Bitcoin price began to record many sudden increases.

Most recently, the world's largest cryptocurrency witnessed an increase from 69,000 USD to more than 72,000 USD/BTC before cooling down and stabilizing around the current 71,300 USD/BTC area. With this market price, Bitcoin's capitalization once again returned to the threshold of 1,400 billion USD.

Since setting a historic peak of nearly 74,000 USD/BTC in mid-March, Bitcoin has undergone two strong corrections and once fell to the 61,000 USD/BTC mark.

Bitcoin's increase occurs in the context of the upcoming halving event. According to CryptoQuant CEO Ki Young Ju, when the event takes place, the cost of mining Bitcoin with the Antminer S19 XP mining equipment will increase from 40,000 USD to 80,000 USD.

After the halving in May 2020, the price for profitable Bitcoin miners increased to above $30,000. A year later, Bitcoin price quickly pushed up to $69,000.

The average Bitcoin mining cost as of April 6 was $49,902, and the value of the cryptocurrency has fluctuated above $70,000. After the halving event on April 20, the average mining cost will increase above $80,000, and for miners to continue operating profitably, the Bitcoin price must trade above that price.

Historically, Bitcoin price has seen a multifold increase after halving. After the 2012 halving, Bitcoin price increased about 9,000% to $1,162. During the 2016 halving, Bitcoin price increased about 4,200% to $19,800 and at the 2020 halving, Bitcoin price increased nearly 683% to $69,000.

As a result, miners remain profitable despite fears of having to go out of business after each halving. The halving event also made some miners obsolete as mining difficulty increased.

Micah Soto

Update 09 April 2024