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Bitcoin rose slightly to start the week after the network on Friday completed its fourth halving, which reduces the incentives paid to bitcoin miners.
The price of the cryptocurrency was last higher by 3.5% at $66,714.15, according to Coin Metrics. Ether rose 1.8% to $3,205.75.
Shares of public cryptocurrency miners got a lift premarket Monday, after rallying into the close Friday before the halving, which took place later that day. The biggest miners, Marathon Digital and Riot Platforms, gained about 3% and 5%, respectively. CleanSpark and Iris Energy increased by 3% and 4%, respectively.
The Bitcoin halving slashes the incentives rewarded to miners in half and takes place about once every four years, as mandated in the Bitcoin code. It’s meant to slow the issuance of bitcoins, creating a scarcity effect and allowing the cryptocurrency to maintain its digital, gold-like quality.
Many investors have been expecting little price action in bitcoin around the halving itself, as historically it has taken several months to see its impact reflected in the price of bitcoin. JPMorgan, however, said it sees some near-term, downside risk in bitcoin.
Large, publicly listed bitcoin mining operations are largely positioned to absorb the event. They have been preparing for months by making big purchase orders for new and more efficient mining equipment, increasing their electricity capacity and growing their hash rates. Hash rates measure the computational efficiency of crypto miners.
Smaller, less efficient operations are at risk of being forced offline, allowing remaining miners to take more market share and opening up M&A opportunities.