Senator Cynthia Lummis (R-WY) has given a specific date for when her long-awaited crypto regulator bill will be unveiled. The legislation will help to sort cryptocurrencies under appropriate regulatory labels and federal jurisdictions. According to a tweet from the senator on Friday, the final version of her bill will be released on Tuesday, June 7th. Lummis has spent months working on the bill alongside Senator Kirsten Gillibrand (D-NY), announcing it as early December 2021. The bill will reportedly provide sweeping…
The countdown to the much anticipated May Bitcoin halving event is finally over, and all key players expect this event to go down in their favor.
Bitcoin miners are perhaps the most affected by this third halving. They had to invest more in equipment, will have to work more complex mathematics, and above all, earn 50% of what they received four years ago.
The other groups anticipating this event are seasonal investors for the hype and seasoned bitcoin investors, some of whom are confident it’s the beginning of the Bitcoin grand rising.
In recent weeks, Bitcoin prices rallied up as more people were buying to hold, confident that prices will keep rising and rising. But since this year’s halving is the first time it is occurring amidst a global recession, it has brought about many uncertainties in the crypto markets.
What do Bitcoin Miners do after Bitcoin’s halving?
Bitcoin is doing the exact opposite of what governments are doing in a time of recession. The current global crisis has governments everywhere carrying out massive quantitative easing, resulting in even higher inflation.
Meanwhile, Bitcoin’s scarcity will increase by 50% as an asset that already has a limited supply, unlike fiat, which central banks can keep printing at will.
BTC miners will earn rewards depending on how fast they can perform on the network, and that means they will have to rely mostly on their mining rigs’ computing power. Many old miners have already been phased out, while others could only come back when BCT prices started rallying in April.
For most miners, this might probably be the last BTC halving they may decide to participate in, and such a fact might turn them into long term ‘hodlers.’ Miners may move to other minable coins, which will give their mining rigs more rewards for less hash power.
Alternatively, mining might become more industrial than an individual, as rig manufacturers and professional mining pools might have more resources to keep up with the extreme BTC mining demands.
There is a lot of speculation right now, but BTC prices might not move as many flash investors anticipate. The high volatility of BTC prices right now makes BTC price movement in either direction a possible reality.
Institutional BTC investors might also see a rise in profits as people lean more towards lending than dumping their BTC.
The scarcity of an asset is always a great price stabilizer, but there are other factors to consider. For instance, some migrants to BTC from traditional markets might decide to go back once the global economy starts to stabilize once again.
BTC’s Post-Halving Liquidity
BTC liquidity will also influence prices because people (hodlers) might choke circulation by avoiding simple BTC transactions.
Additionally, big fish BCT investors, also known as “crypto whales,” might also play a key role. They have been known to buy in bulk to stimulate demand or dump in bulk to stimulate supply.
Therefore, they might try to dupe the market through price manipulation and affect short-term and long-term BTC prices after the halving.