IN SUMMARY
- As the 2024 Bitcoin halving approaches, there is growing anticipation among cryptocurrency enthusiasts for BTC to reach $100,000.
- Riot Platforms, a leading Bitcoin miner, plans a significant expansion in its mining capacity by the end of 2024.
- Historical patterns hint at potential BTC bull markets after the halving, with some industry experts predicting a price surge.
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The cryptocurrency market has gone through many ups and downs, but nothing is as anticipated as Bitcoin halving. This is an event that has historically influenced the price of BTC.
As Bitcoin's upcoming 2024 halving approaches, speculation abounds, with various industry experts sharing their predictions. A prevailing sentiment echoes the prediction that Bitcoin will hit the $100,000 mark before this landmark event.
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Expansion of Bitcoin mining operations
Riot Platforms, one of the major players in the Bitcoin mining industry, has provided expansion guidance beyond 2023.
With the largest Bitcoin mining and hosting facility in North America, the company aims to increase its mining capacity to 20.1 EH/s by mid-2024. It also projects further expansion to 35.4 EH/s by the end of the same year.
“The agreement calls for delivery of the new miners from December 2023, with miner deployment planned to begin in the first quarter of 2024. of Riot's self-mining hash capacity is expected to increase to 20.1 EH/sec," reads the announcement.
If Riot Platforms is successful, it will emerge as the top Bitcoin mining company, beating rivals Marathon Digital Holdings and CleanSpark.
The overall hash rate of the Bitcoin network could increase significantly as larger players expand their capabilities. Increased competition for block rewards due to a higher hash rate can, in turn, affect miners' profitability. Especially after the halving when block rewards are cut in half.
A recent report by Seeking Alpha suggests that the 2024 Bitcoin halving will increase the average operating cost of mining each BTC to between $30,000 and $60,000 and reduce mining earnings by 50%.
With the highest Bitcoin value on record at around $69,000, a significant decrease in revenue could compromise many Bitcoin miners.
“We don't see any way for the Bitcoin sector to come out unscathed. Even with RIOT's ambitious 35 EH/sec, our model suggests that Bitcoin needs to trade above $98,000 to justify RIOT's current (post-halving) valuation," the report reads.
Prediction for BTC: $100,000
Many industry experts also share the belief that Bitcoin will reach $100,000 by the time of the 2024 halving. For example, Adam Back, CEO of Blockstream, firmly believes that Bitcoin will break its previous highs.
He predicts that BTC will reach a price of over $100,000 before the next Bitcoin halving. In fact, Back, one of the few people cited by Satoshi Nakamoto in the Bitcoin white paper is so confident in his prediction that he is willing to bet money on the outcome.
“The bet is: I bet Bitcoin will hit or exceed $100,000 between now and the halving with [Vikingo] 1 million sats for the winner,” Back said.
And he is not alone in this optimistic outlook. Samson Mow, CEO of Jan3, shares the sentiment, expecting a record price for Bitcoin before the halving, not after.
Adding to this chorus is Standard Chartered, which has revised its Bitcoin forecast to $120,000 by the end of 2024. The international banking firm's rationale hinges on increasing miner profitability per BTC mined, resulting in reduced BTC sales. and a subsequent rise in BTC prices.
This outlook underscores the notion that miners can cover costs by selling less BTC as Bitcoin prices soar. Consequently, holding more BTC in anticipation of future price increases.
Likewise, Matrixport maintains that Bitcoin reaching a one-year high on June 22, 2023, could have signaled the end of the bear market and the start of a new Bull Run, as it did in previous cycles. This indicator was triggered four times and in each case, a bull market developed over a period of 12 to 18 months.
“If history is any guide, there is now a 100% probability that, by the end of 2024, Bitcoin will experience another major bull market with a $125,000 price target,” the report reads.
Altcoins Explode After Next Bitcoin Halving
While several factors indicate that Bitcoin will reach $100,000 before the halving, predicting the future of cryptocurrencies remains a challenge.
The intertwined complexities of operational and financial factors and the volatile nature of the crypto market mean that forecasts must be taken with caution.
However, as the next Bitcoin halving approaches, cryptocurrency enthusiasts are watching with bated breath, eager to see if the prophecies will spill over into the altcoin market. Under the pseudonym Rekt Capital, the technical analyst predicts the possibility of “alt season” after the Bitcoin halving.
“The next few months leading up to the BTC halving will be crucial if you want to grow in the next 1.5 to 2 years in crypto. These months will offer the necessary pullbacks for altcoins that you need to take advantage of for great ROI post halving,” said Rekt Capital.
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