Bitcoin miners are turning very bullish on the cryptocurrency’s price, according to data analytics firm Skew Markets.<\/p>\n
The London-based cryptocurrency group explained that miners are increasing their capacity to mine bitcoins, a behavior which typically reflects their interest in boosting their incentives. And the reason why they want to accumulate as much as bitcoins as they can is their upside sentiment. Miners believe they would be able to sell the freshly-minted cryptocurrencies at a higher price.<\/p>\n
The bullish calls borrow it fat from a scheduled event next year. “Halving” will reduce bitcoin mining reward from 12.5 BTC to 6.25 BTC. The situation is specifically substandard for miners, who would need to spend the same amount of hard\u00a0cash \u2013 for setting up mining facilities and paying for electricity and workforce \u2013 for a slashed-down reward system. In such a case, only a higher bitcoin spot rate can help miners continue their operations. Or, they can as well accumulate bitcoins in advance and sell them against higher market demand.<\/p>\n
“Not clear why miners would rush to add capacity into an event next year where the rewards will be halved,” wrote Skew. “They must be very confident in their competitiveness or very bullish on price.”<\/p><\/blockquote>\n
\nLitecoin\u2019s halving is a perfect reminder that you better hurry up to own some Bitcoin today before it halves. <\/p>\n
Plan your future wisely.<\/p>\n
— Trezor (@Trezor) August 5, 2019<\/a><\/p><\/blockquote>\n