The cryptocurrency market has seen many ups and downs, but nothing is as highly anticipated as the Bitcoin halving. This is an event that has historically affected the price of BTC.
As the next Bitcoin halving event in 2024 draws near, speculation is rife and various industry experts are sharing their predictions. A prevailing view reflects the prediction that Bitcoin will hit $100,000 before this milestone.
Bitcoin mining operations are expanding
Riot Platforms, one of the major players in the Bitcoin mining industry, provided an expansion forecast for after 2023.
With North America’s largest Bitcoin mining and hosting facility, the company aims to increase its mining capacity to 20.1 EH/s by mid-2024. A further increase to 35.4 EH/s is also forecast by the end of the same year.
“The agreement provides for delivery of the new miners beginning in December 2023, with miner deployment expected to begin in the first quarter of 2024. Upon full deployment of the 33,280 miners on order, which is expected to be completed by mid-2024, Riot’s self-mining hash rate is expected to increase to 20.1 EH/s capacity,” the announcement reads.
If successful, Riot Platforms will become the leading bitcoin mining company, overtaking competitors Marathon Digital Holdings and CleanSpark.
Bitcoin hash rate. Source: Glassnode
The overall hash rate of the bitcoin network can increase significantly as larger players expand their capacities. In turn, increasing competition for block rewards due to a higher hash rate may affect miners’ profitability. Especially after the halving when the block rewards are halved.
Read more: What is Bitcoin (BTC) Halving?
A recent report from Seeking Alpha suggests that the Bitcoin halving in 2024 will increase the average operating cost of mining each BTC to $30,000-$60,000 and reduce mining revenue by 50%.
With the highest bitcoin value on record being around $69,000, a significant drop in revenue could put many bitcoin miners at risk.
“We see no way the bitcoin sector can get away with it. Even with RIOT’s ambitious 35 EH/s, our model suggests that Bitcoin needs to trade above $98,000 to justify RIOT’s current valuation (post-halving),” the report reads.
BTC price prediction: $100,000
Many industry experts also share the belief that Bitcoin will hit $100,000 around the time of the 2024 halving. For example, Adam Back, CEO of Blockstream, is adamant that Bitcoin will break its previous records.
He predicts that BTC will hit a price above $100,000 before the next bitcoin halving. In fact, Back, one of the few people quoted 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 on: I bet bitcoin hits or surpasses $100,000 by the time of the halving [Vikingo] 1 million sats for the winner,” said Back.
And he is not alone with this optimistic outlook. Samson Mow, CEO of Jan3, agrees and expects a record price for Bitcoin ahead of the halving, not after.
Read more: Bitcoin (BTC) Price Prediction
Bitcoin price growth per halving. Source: Blockware Solutions
Also joining 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 rests on miners’ higher profitability per BTC mined, leading to lower BTC sales and a subsequent spike in BTC prices.
This perspective reinforces the notion that miners can break even by selling less BTC as bitcoin prices rise. Consequently, more BTC is being held back in anticipation of future price increases.
Likewise, Matrixport claims that Bitcoin’s hitting a one-year high on June 22, 2023 could have signaled the end of the bear market and the start of a new bull market, as has been the case in previous cycles. This indicator was triggered four times and each time a bull market developed for a period of 12 to 18 months.
“If history is anything to go by, there is now a 100% chance Bitcoin will experience another massive bull market with a target price of $125,000 by the end of 2024,” the report said.
Altcoins Boom After Next Bitcoin Halving
While multiple factors suggest Bitcoin will hit $100,000 before the halving, predicting the future of crypto remains a challenge.
Due to the complexity of operational and financial factors and the volatility of the crypto market, forecasts should be taken with caution.
Read more: The 9 Best Bitcoin Exchanges and Platforms in 2023
However, as the next Bitcoin halving draws near, crypto enthusiasts are watching with bated breath to see if the prophecies will spill over into the altcoin market. Under the pseudonym Rekt Capital, the technical analyst sees the possibility of an “alt season” after the Bitcoin halving.
“The next few months leading up to the BTC halving will be crucial if you want to make it big in crypto over the next 1.5 to 2 years. These months will provide you with the necessary altcoin retracements you need to leverage in order to achieve excellent ROI post-halving,” said Rekt Capital.
Disclaimer
Following the Trust Project guidelines, this feature article presents opinions and perspectives from industry experts or individuals. BeInCrypto is committed to transparent reporting, however, the views expressed in this article do not necessarily reflect those of BeInCrypto or its employees. Readers should independently verify information and consult a professional before making any decisions based on such content.
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