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 by far hottest topic in Crypto right now, is the entry of institutional investors and all of that during a bear market. While of course we can speculate that many of them had already thought about this since 2021 and probably even bought BTC or other Crypto assets behind closed doors without anyone knowing. But now with the largest asset-manager leading the push for a Spot Bitcoin ETF, it is indeed the age of institutional investors in Crypto.
Another example for that may be Goldman Sachs, also one of the biggest asset-managers, who just this year started to acknowledge BTC as the best-performing asset of the year. But that was not always like thatโฆ
Yeah, in 2018 Goldman Sachs, just as many of those other institutions of today, was very anti-Bitcoin. They just wanted to see Bitcoin die at every opportunity. Now during the 2018 bear market (which was actually less severe than the current bear market), they were also one of those calling Bitcoin dead and that it could just never recover from that bear market.
Bitcoin, in fact did recover from itโs first bear market following a mainstream hype bull market and went on to itโs biggest bull market yet in 2021 (in absolute value of money). Now this will probably be the same story of for the 2022/23 bear market and a possible bull market in 2024/25.
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.