Bitcoin Halving Countdown: Should You Invest in Mining Stocks Now?

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Recent weeks saw a significant drop in the cryptocurrency market, impacting Bitcoin mining stocks heavily. Many of these stocks mirrored Bitcoin's decline.

Although Bitcoin rebounded yesterday as it started moving upwards again, this doesn't erase the overall bearish trend.

However, as Bitcoin seems to have paused its downward trend and has positive prospects due to various bullish factors, the question arises: Are Bitcoin mining stocks wise investments for potential gains from the cryptocurrency's next upward movement, which might lead to new record highs?

In this regard, it's worth recalling that several renowned banks and firms have recently shared particularly ambitious short-term forecasts for Bitcoin, with Standard Chartered in particular citing a target of $150,000 by the end of the year.

However, the price of Bitcoin isn't the only factor influencing the price of mining stocks over the coming weeks. Indeed, the next halving of bitcoin takes place next month, which could cause considerable turbulence in the sector.

Halvings occur every 4 years or so and consist of halving Bitcoin miners' rewards for each block mined. In other words, Bitcoin miners will get fewer Bitcoins for the same amount of work.

On the face of it, then, this is bad news for Bitcoin mining companies, but it's more complex than that.

First of all, by halving miners' rewards, halvings also halve the rate of growth in the supply of Bitcoins, with a theoretically mechanically bullish impact, which has been verified in practice during previous events of this type, with BTC rising both in anticipation of and in reaction to these