The post Bitcoin Miners Brace for Halving Event: Six-Figure Price Needed for Sustainability appeared first on Coinpedia Fintech News
The world of Bitcoin mining has been closely monitored as the halving event approaches, and a recent analysis sheds light on the critical price point that miners need to sustain profitability. With Bitcoin’s price constantly dropping below the $30,000 level, forecasts of Bitcoin reaching a six-figure price by the end of 2024 persist.
Challenges Ahead for Public Miners, Bitcoin Halving Approaches?
Bitcoin mining stocks have been showing impressive performance, outpacing BTC itself in recent months amid reduced volatility and consolidation in the cryptocurrency market. While Bitcoin has seen a steady rise, mining companies’ stocks have surged by almost 100% within a short period.
A report by Seeking Alpha focuses on a prominent mining company, Riot Platforms, and examines the challenges it may face, especially with the upcoming halving event. The halving will lead to a 50% reduction in BTC block rewards, significantly impacting miners’ revenue streams.
To cope with the halving effects, miners like Riot may consider issuing new equity shares to fund their operations. However, this could dilute existing shares, potentially affecting share prices even if the company’s fundamentals remain strong.
Moreover, some mining stocks may already be overbought at current valuations, raising concerns about their sustainability. While to remain profitable at the current hash rate levels, miners will likely need a substantial surge in Bitcoin’s price.
Miners Struggling to Stay Afloat: Six-Figure Bitcoin Prices Needed
In the world of Bitcoin mining, staying profitable has become a significant challenge. An in-depth analysis indicates that miners’ operational viability relies on the BTC price surging beyond $100,000.
This price point factors in the halving’s impact, which reduces the supply of new Bitcoins entering the market, consequently affecting miners’ rewards.
“The report highlights that the Bitcoin sector could face serious consequences unless the cryptocurrency exceeds expectations. For instance, Riot Platforms, with its ambitious 35 EH/s mining capacity, would require Bitcoin to trade above $98,000 to justify its current valuation after the upcoming halving.”
However, the report warns investors that holding BTC mining stocks could be “extremely risky.” The underlying fundamentals may not be keeping up with current valuations, which may not be factoring in the effects of next year’s Bitcoin halving.
BTC Price Soaring to $125,000 in 2024?
There has been plenty of speculation about Bitcoin’s future price, and a recent Matrixport report adds to the excitement. According to the report “Matrix on Target: Prepare for the Soaring 2024 Year-End Bitcoin Target of $125,000,” Bitcoin will reach $45,000 by the end of this year and $125,000 by the year 2024.
The significance of Bitcoin hitting a one-year high after a year-long gap is not lost on the authors. Historically, this signal has marked the start of new bull markets, as seen in previous occurrences in August 2012, December 2015, May 2019, and August 2020. The subsequent bull markets emerged in 2013, 2017, and 2021.
Based on this pattern, the report suggests a 100% probability of another massive bull market for Bitcoin by the end of 2024, culminating in a price target of $125,000 (+310%) – a six-figure prediction that aligns with forecasts from other reputable sources.
With Standard Chartered also projecting a $120,000 Bitcoin price by 2024, it seems the crypto community is gearing up for exciting times ahead, fueled by optimism and expectations of a flourishing BTC market.
As the mining landscape evolves, miners are closely watching Bitcoin’s price trajectory to ensure their operations remain sustainable and profitable in an ever-changing market.