![Bitcoin may hit 0K by capturing ‘even 2%–5% of gold’s market cap’ — Hut8 VP Sue Ennis Bitcoin may hit 0K by capturing ‘even 2%–5% of gold’s market cap’ — Hut8 VP Sue Ennis](https://i0.wp.com/images.cointelegraph.com/images/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDgvNDY2NWI2N2YtNTA2Ni00NDZkLWIwYWQtMjQ4NmU3YjUyOWMzLmpwZw==.jpg?fit=%2C&ssl=1)
With less than nine months to go before the next Bitcoin halving event, the consensus among analysts and investors is that the halving will send BTC prices to new all-time highs, even breaking $100,000.
Despite this belief, the lack of new inflows into the cryptocurrency market, current macroeconomic headwinds, and BTC’s recent price action below $30,000 haven’t inspired much confidence in the theory in the short term.
in a recent interview Hut8 Vice President Sue Ennis shared with Paul Barron her thoughts on how the price of Bitcoin will rise above $100,000 next year and how the upcoming halving will affect BTC miners. Hut8 currently has a reserve balance of 9,152 BTC, of which 8,305 BTC is unencumbered. The company’s installed ASIC capacity is 2.6 ETH/s, and Hut8 mined 44.6 BTC in July.
In the interview, Barron asked miners whether the increase in Bitcoin’s difficulty would trigger a new wave of selling pressure on the price of Bitcoin. Citing data from the Hashrate Index, Barron’s observed that Bitcoin’s price fell after its difficulty spiked.
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Baron questioned whether miners are selling Bitcoin due to the upcoming halving, thus requiring more efficient ASICS, and whether the price trend of Bitcoin before and after the halving will not be as optimistic as investors expect.
According to Ennis:
“There are a lot of unprecedented dynamics going on in the mining space. What’s interesting is that while the bitcoin price is trading in a range, hashrate continues to come online and we’re still seeing hashrate increase.”
Ennis elaborated:
“What’s changed now is that we’re seeing BTC prices drop slightly but hashrate continues to rise. What’s exciting and different is that we’re seeing a flood of new entrants into the global Bitcoin network.”
Ennis mentioned that the Middle East is producing 6 GW of nuclear and renewable energy, and that governments in the region are exploring Bitcoin mining as an option, which is bringing more electricity online in a price-agnostic way. computing power. This is very different from how publicly traded and more forward-looking miners in the US operate.
To survive the halving, Ennis suggested that miners need to avoid becoming “single-threaded,” meaning they need more than one way of earning income in addition to mining bitcoin.
Revenue diversification would include exploring various AI applications, providing some warehouse rack space for GPUs to companies specializing in AI training, and potentially providing industrial-grade ASIC repair services, and even participating in the development of large energy producers and distributors. Demand Response Program.
related: September “slump” to $22,000? — 5 things to know about Bitcoin this week
Prices Rise Due to Halving and Final BTC ETF
Cryptocurrency investors have waited years for the launch of a bitcoin spot ETF, and even with the recent influx of applications, SEC approval remains elusive.
Despite the history of delays and denials, Ennis said “the imminent launch of a spot ETF is very bullish for the asset class,” but she also warned that approval could be negative for mining stocks given how often they are used to trade. Create selling pressure as a proxy investment for Bitcoin.
Regarding the percentage likelihood of a spot bitcoin ETF being approved by the end of 2023, Ennis said:
“It’s definitely better than 50. The real reason I’m taking that view on this is because BlackRock is involved. BlackRock is strong, it’s the largest asset manager in the world. Getting them involved and saying this is what we want Yes, and their influence over the market in past moves has been huge. So I think it’s a really bullish sign for them.”
Regarding potential targets for the price of Bitcoin, Ennis said:
“I do think that in the next cycle, the cost per bitcoin may reach $100,000, based on BTC taking 2% to 5% of the $13 trillion gold share in institutional portfolios. If BTC Can occupy 2% to 3% of the market value of gold, then the price of gold will rise sharply and break through $100,000.”
This article does not contain investment advice or recommendations. Every investment and transaction involves risk, and readers should do their own research when making a decision.
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