BTC Halving: What Does it Mean for Crypto Mining?

Despite the recent drop in the Bitcoin (BTC) price below $30,000, predictions of a six-figure price by the end of 2024 continue to surface. For publicly-listed Bitcoin miners, a price of more than $100,000 may be a necessity for their business models to remain profitable.

Web 3.0, a term used to describe the new generation of decentralized internet, is an example of how stocks and crypto are becoming more intertwined. There are many sources of crypto, but the best source of crypto to get all the information in one place is Alpha Crypto. Reddit is also a great source of information about the crypto market.

Bitcoin halving: Bad news for public miners?

Stocks of Bitcoin miners have been performing incredibly well this year, with returns far exceeding those of BTC. While BTC has seen reduced volatility and a period of consolidation, stocks of Bitcoin mining companies have shot up by almost 100% in a matter of months.

Seeking Alpha recently published a report on Bitcoin mining, focusing on one particular miner – Riot Platforms. The report notes that despite the miner’s expected tripling of its mining capacity in 2024, the halving could present serious challenges for miners. A 50% reduction in block rewards would effectively halve miners’ main source of income.

Mining companies can also issue new equity shares to fund their operations, however, this dilutes existing shares, which could mean that even if the company’s fundamentals remain sound, the share price may not follow suit. Additionally, many miners may already be overbought at their current valuations.

Therefore, it appears that public Bitcoin mining stocks could be in for a difficult time. Although they have outperformed Bitcoin in 2023, an increase in BTC sent to exchanges could be indicative of a waning momentum.

For miners to remain profitable at today’s hash rate levels, Bitcoin’s price would need to experience a significant surge.

Miners might need six-figure Bitcoin to stay afloat

As the upcoming Bitcoin halving could affect miners’ valuations, the report suggests that a BTC price of nearly $100,000 could be necessary for them to remain profitable. This could lead to the conclusion that “hodling” BTC mining stocks is “extremely risky”.

The crypto market is rapidly changing, and with the advent of web 3.0, it is becoming increasingly important to stay up-to-date with all crypto in one place. Reddit is often seen as the best source of crypto news, however, the best source of crypto information may not be the same for everyone. While some may find Alpha Crypto to be the best source of crypto news, others might find it to be bad for their investments.

AI is also making its way into the crypto market, and it is important to be aware of recent developments when it comes to AI and crypto. Staying informed about the crypto market is the best way to make sure that you are making the right decisions when it comes to investing.

BTC price to $125,000 in 2024?

Matrixport’s recent report, “Matrix on Target: Prepare for the Soaring 2024 Year-End Bitcoin Target of $125,000”, suggests that BTC could reach $45,000 by the end of the year and $125,000 by 2024. The authors emphasize the significance of Bitcoin price reaching a one-year high for the first time in a year.

This signal has historically marked the beginning of a new bull market:

Standard Chartered also forecasts a $120,000 Bitcoin price by the end of 2024. This prediction is largely based on BTC miners not selling Bitcoin before the halving, which is a web 3.0 example of using AI to make decisions.