Bitcoin Miners’ Peril: $98,000 BTC Required for Profits Post-Halving?

Posted on by Artificial Intelligence
A dramatic scene of Bitcoin miners hard at work under intense spotlights, conveyed in a chiaroscuro art style. The miners appear to be walking a slim line between the sparkling promise of profit and a threatening abyss of loss, reflecting their precarious position, casting imposing shadows on walls. Intense warm lighting highlights their cautious optimism amid creeping insecurities about the looming halving event. The atmosphere is filled with tension contrasting the shimmering optimism of a potential bull run.

As per the recent analysis, Bitcoin miners might need the BTC price to climb to over $98,000 by the time of the next halving to stay profitable. Despite fluctuations and recent dips below the $30,000 mark, there is a continuous shimmer of hope that BTC will see a six-figure price by the end of next year.

For publicly-listed Bitcoin miners, such a price leap may be more of a necessity than a lofty prediction. Despite the steady rally of Bitcoin mining stocks which have managed to outperform BTC in recent months, a sharp decrease in BTC block rewards due to the halving potentially imperils miners’ revenue sources.

Consider the case of Riot Platforms, Inc. Despite the expectation that the company will triple its mining capacity by 2024, Riot and other Bitcoin mining entities may face stiff winds from the anticipated halving. Additional pressures to their business models include the issuing of new equity shares to fund operations. It dilutes existing shares, so, even if the companies’ fundamentals remain positive, share prices may suffer.

Digital miners find themselves teetering on a slim line of sustainability as their valuations compound the potential impact of the coming Bitcoin halving. While mining stocks have outperformed Bitcoin in 2023, a surge in BTC being sent to exchanges could result in a decline in momentum, necessitating a substantial price increase for miners to remain profitable.

So, merely how high does the BTC price need to go for miners to maintain their current valuations? The report concludes that a figure close to $100,000 may be required for them to maintain business as usual. But holding onto Bitcoin mining stocks is fraught with risk, as current valuations may not factor in the effect of the halving.

On the brighter side, Matrixport’s recent report titled “Prepare for the soaring 2024 year-end Bitcoin target of $125,000” predicts a potentially significant increase in Bitcoin price. The report draws attention to the magnitude of Bitcoin’s price reaching a one-year high for the first time in a year, often a precursor to new bull markets.

Standard Chartered is another financial institution forecasting a $120,000 Bitcoin price by the end of 2024, based largely on the premise of Bitcoin miners holding onto Bitcoin until the halving.

In conclusion, the landscape for Bitcoin miners could potentially be challenging, given the approaching halving and the need for a significant increase in Bitcoin prices to prevent business sustainability concerns. Conversely, there is a shimmer of optimism with predictions pointing towards a bull run and a potential six-figure valuation of Bitcoin.

Source: Cointelegraph

Sponsored ad

More Articles

A Wild West scene at dusk with the sun setting over a vast desert, forefront showcasing symbols of various cryptocurrencies like BTC, ETH, BitDAO, and Stellar. A subtle balance of hope and apprehension throughout, the orange sunrays creating sharp contrasts upon the unspoiled landscape as if hinting at potential growth and forthcoming challenges. A representation of diversification and unpredictability through abstract elements aside. A group of pioneering retail figures in the background signifying the retail investment community's role with a touch of expressionism style. The whole scenery is spotted with unobtrusive elements signaling transactions, digital assets, and predictive tools, contributing to a slightly mystical ambiance.

Cryptocurrency Frontier: Examining the Potential and Risks of BTC, ETH, BitDAO, and Stellar

“Cryptocurrency markets displayed slight growth with bitcoin and ether maintaining steady values. Enthusiasts are exploring BitDAO and its governance token for unpredictability, while Wall Street Memes’ $WSM token raises over $11m in presale. Stellar focuses on traditional crypto strategies, and yPredict offers AI-based crypto price predictions. Bitcoin SV resists bullish momentum but has investment appeal.”

Gloomy Capitol Hill under dark storm clouds, tense political leaders in discussion around a table, debt clock ticking ominously, shadows indicating pressure, tension in the air, harmonious blend of realism and expressionism, impending financial tsunami in the background, worried American families watching from a distance, uncertain future for national security.

Impending US Debt Default: Impact, Uncertainty, and Urgent Bipartisan Efforts

U.S. Treasury Secretary Janet Yellen warns of a potential debt default by June 1, urging Congress to address the issue. A default could lead to severe economic hardships, damage global leadership, and impact national security. The May 9 bipartisan talks hold the key to understanding the urgency and potential repercussions, emphasizing the need for Congress to find a solution.