Bitcoin miners are at the mercy of the whims of the market. In this turbulent scenario, they are obsessed with one number: 98,000. This is the dollar cost bitcoin must reach before the next halving in 2024 for their business to remain viable.
The dawn of a dilemma: the 2024 halving
The bitcoin halving is like a real Damocles sword. Indeed, this programmed 50% reduction in Bitcoin block rewards threatens to cut in half the main source of income for miners. If some, like Riot Platformsplan to triple their mining capacity, this expansion could come up against headwinds.
According to a recent analysis from Seeking Alphafor miners like Riot to maintain their current valuation, bitcoin will need to reach a cost close to 100,000 dollars.
Otherwise, the outcome could be devastating for the mining industry. This means that despite a recent loss of the $30,000 level, bitcoin must see its price climb to six figures by the end of 2024 to keep miners profitable.
In addition, the issuance of new shares by mining companies, aimed at financing their activities, creates a devaluation of their existing shares and a possible gap between the market value and the real fundamentals.
That, coupled with a possible overvaluation of mining stocks, is clouding the outlook for public miner stocks. However, despite these concerns, mining companies have performed exceptionally well. last year, significantly outperforming bitcoin and Nvidia.
This indicates that, for now, investing in the shares of these mining companies provides high bitcoin exposure. However, their vulnerability could increase if bitcoin does not cross the $98,000 mark before the halving in 2024.
The BTC Price Outlook
Despite these challenges, some signs of hope are emerging on the horizon. Pantera Capital, for example, sketches a bold prediction. If history is to be learned, bitcoin could well embark on another dramatic ascent by the end of 2024, with a target value approaching $150,000.
This hypothesis of bitcoin reaching the six-digit threshold is far from isolated. Other influential voices, like that of Robert Kiyosaki, also anticipate a sharp rise, setting the course for bitcoin at $120,000 by the end of 2024.
However, bitcoin’s trajectory remains uncertain. It remains to be seen whether bitcoin will cross the crucial $98,000 milestone, ushering in a new era of prosperity for miners, or if it will remain stuck below that level, threatening the very survival of those mining the precious cryptocurrency. . The watch is ticking, the countdown is on. Exxon powers bitcoin with natural gas. 2024 is approaching, and with it, the destiny of bitcoin and its miners.
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