Market Forces Point to BTC Price Surge
Industry executives from mining and manufacturing companies are speculating that the fourth Bitcoin halving in 2024 could drive the price of Bitcoin (BTC) beyond $100,000. These predictions were discussed during a panel at Canaan’s Avalon Bitcoin and Crypto Day (ABCD) in Singapore, which included Bitcoin mining ecosystem executives from Singapore, Kazakhstan, and the United Arab Emirates. The anticipated price surge is expected to result from the reduction in Bitcoin supply caused by the halving event.
Institutional Interest on the Rise
Canaan vice president Davis Hui highlighted the potential impact of traditional finance institutions entering the cryptocurrency sector. He noted that asset management giant BlackRock, with $10 trillion of assets under management, surpassed the entire cryptocurrency market cap, indicating that the company could significantly impact the demand for Bitcoin. Hui stated, "This money will come in, the BTC demand will increase, while the supply has decreased, and the price will increase."
Miners Face Challenging Market Environment
As the competition in the mining industry intensifies, many miners are struggling to maintain profitability. High hash rates and network difficulties are directly affecting their earnings. Some miners are shutting down their operations due to the inability to cover electricity costs with the mining rewards they earn. However, those who can upgrade to more efficient machines are better positioned to stay profitable. Hui mentioned that mining companies in the US might face additional challenges due to high electricity and administrative costs.
It is worth noting that Canaan, a prominent industry player, reported a financial loss in the first quarter of 2023, underscoring the impact of the extended cryptocurrency bear market.
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