Executives Foresee Bitcoin Price Surpassing $100,000 After Fourth Halving
Prominent mining and manufacturing firms’ executives are predicting that the upcoming fourth Bitcoin halving in 2024 could push the price of Bitcoin (BTC) past $100,000. This forecast was made during a panel discussion at Canaan’s Avalon Bitcoin and Crypto Day (ABCD) in Singapore, which was attended by Bitcoin mining ecosystem executives from Singapore, Kazakhstan, and the United Arab Emirates.
Andrew Fenton, editor of a renowned magazine, spoke with Canaan’s vice president, Davis Hui, about these predictions. Hui explained that the price surge would be driven by the significant reduction in the supply of Bitcoin resulting from the halving, in which the mining reward will be reduced to 6.25 BTC per block. Additionally, Hui pointed out that traditional financial institutions are increasingly showing interest in investing in the cryptocurrency sector.
Hui cited the example of BlackRock, which holds $10 trillion of assets under management, compared to the current cryptocurrency market cap of $2 trillion. This interest from institutional investors, combined with the decreased supply of Bitcoin, is expected to drive up its price. Hui also mentioned several Bitcoin exchange-traded fund applications that have been submitted to the United States Securities and Exchange Commission by major asset managers, noting that if approved, these funds could further increase the demand for BTC.
The Canaan VP also acknowledged that the mining industry is becoming increasingly challenging for miners to operate in, with high hash rates and network difficulties eating into their profitability. Hui explained that miners who are unable to cover their electricity costs with the mining rewards will be forced to shut down their operations. On the other hand, those who continue mining are banking on the potential upside of the 2024 halving.
Hui also speculated that mining companies in the US might face greater difficulties due to high electricity and administrative costs. He emphasized the importance of miners upgrading to more efficient and powerful machines to maintain profitability.
Furthermore, Hui acknowledged that Canaan, like other industry companies, reported a financial loss in the first quarter of 2023, highlighting the impact of the prolonged cryptocurrency bear market. Despite this setback, Hui remains optimistic about the future of Bitcoin, particularly leading up to the 2024 halving.
In conclusion, industry executives believe that the fourth Bitcoin halving scheduled for 2024 could have a significant impact on the price of Bitcoin, with predictions that it could surpass $100,000. The reduced supply of Bitcoin, coupled with the increasing interest from institutional investors, is expected to drive up the demand and price of BTC. However, the mining industry faces challenges, and miners will need to adapt by upgrading their equipment to maintain profitability.
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