In the most recent installment of Cointelegraph’s Market Talks, host Ray Salmond engaged in a conversation with Dan Rosen, the associate director of derivatives at Luxor, a Bitcoin mining pool, research center, and service provider based in the United States.
During the show, various topics were discussed, including Rosen’s perspective on the potential impact of the upcoming Bitcoin halving on the price of BTC, the reasons behind Bitcoin’s consistent volatility, and the ability of miners to protect their operations through hash rate derivatives.
Rosen stated that historically, miners have had limited options for mitigating risk in their operations, apart from pledging their mined Bitcoin rewards. However, Luxor’s hash rate derivatives have introduced a new dimension to the industry by allowing miners to hedge against fluctuations in hash price. These derivatives enable miners to forecast and secure future revenue, particularly during periods of unexpected volatility that may affect the efficiency of their operations.
In relation to the macroeconomic landscape and its potential effects on Bitcoin’s price and miners, Rosen highlighted the market’s realization that achieving the 2% inflation target rate in the near future is unlikely. Instead, the market appears to be factoring in a longer-term inflation rate ranging from 2.5% to 3%. Simultaneously, the U.S. dollar is still perceived as a safe-haven asset, which is impacting equity markets and creating macroeconomic headwinds. Consequently, the value of dollar-denominated assets is depreciating.
Despite the gloomy economic prospects, Rosen remains optimistic. To gain further insights, listeners are encouraged to listen to the complete episode of Market Talks on the new Cointelegraph Markets & Research YouTube channel. Additionally, viewers are encouraged to click “Like” and “Subscribe” to stay updated with the latest content.