Posts about Bitcoin
For publicly-listed Bitcoin miners, in particular, a price north of $100,000 may be more of a necessity than a forecast if their business models are to remain profitable. Bitcoin mining stocks have been on a tear this year, outperforming BTC by a wide margin in recent months. While BTC has seen reduced volatility and a period of consolidation, Bitcoin mining companiesโ stocks have risen by nearly 100% in a matter of months.
Recent performance of popular BTC mining stocks. Source: Seeking AlphaA big increase in Bitcoinโs price will therefore be required for miners to remain profitable at todayโs hash rate levels.
How high does the BTC price need to go for miners to maintain their current valuations?
A recent report by Seeking Alpha explores BTC mining by examining one popular miner in particular: Riot Platforms. It notes that despite Riot being expected to triple its mining capacity in 2024, the company and Bitcoin miners, in general, could face serious headwinds from the halving. A 50% decrease in BTC block rewards cuts minersโ main source of revenue in half. Miners like Riot can also issue new equity shares to fund their operations. This dilutes existing shares, meaning that even if the companyโs underlying fundamentals are sustained, the share price may not keep up.
Do you think BTC can break the 100k price by end of 2024?
The halving is coming and it's coming fast. Less than one year left until we reach the pivoting moment where once again the block reward for Bitcoin gets cut in half. This will be the 4th Bitcoin halving in history. 40,000 blocks left.
Speculators will continue to speculate, predicting the price will go up because of this event but to me it's exciting either way. You will be part of history seeing this play out and for me this will be my first time being able to watch it happen live. So stay humble, stack sats or whichever cryptocurrency you are accumulating and be patient. Hopefully all this effort waiting and enduring the crash of 2022 will be rewarded.
Historically speaking the actual day it occurs not much happens with the price and we still spend some time going sideways, likely will happen this time as well.