What is the Bitcoin "Halvening?"

And how can we benefit from it?

The Halvening

This is something I have talked about (somewhat jokingly) over the past few days. “The Halvening” refers to the fact that roughly every four years (or 210,000 blocks being mined) the reward for mining divides by two.

Therefore, soon Bitcoin miners will get half as much value as they are currently getting for their mining efforts.

“The Halvening” is estimated to occur in just over a month on April 19.

What Does This Affect?

This certainly affects Bitcoin miners such as MARA, RIOT, and CLSK among others. This should negatively effect them because they will be receiving half the value for their mining.

This is why you are seeing the mining names dropping even though Bitcoin has been rising (see Bitcoin in orange vs. MARA in blue below):

This will affect other Bitcoin-related names, too, though it’s unclear how. Many think that since Bitcoin will become more scarce, it will increase the price of the asset due to limited supply. However, this assumes that demand will remain/increase, which is not certain.

Regardless, we are seeing names like MSTR holding up for the time being. My advice would be to continue monitoring the performance of miners and other Bitcoin names like MSTR vs. the actual movement of Bitcoin to understand whether you have strength or weakness.

I walk through Bitcoin names and my outlook on them in the clip here: