Executives from prominent mining and manufacturing companies believe that market forces arising from the fourth Bitcoin halving in 2024 could force the price of Bitcoin (BTC) above $100,000.
Magazine editor Andrew Fenton spoke with Canaan Vice President Davis Hui following a panel discussion at Canaan’s Avalon Bitcoin and Cryptocurrency Day (ABCD) in Singapore.
Hui and a group of Bitcoin mining ecosystem executives from Singapore, Kazakhstan, and the United Arab Emirates both made predictions for BTC prices of around $100,000 in 2024 due to the latest Bitcoin mining rewards Halving the impact.
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Hui told Cointelegraph that Bitcoin’s supply will be significantly reduced, with rewards halved to 6.25 BTC per block, and traditional financial institutions are increasingly interested in investing in the industry:
“What about BlackRock? They have $10 trillion in assets under management. The total market cap of cryptocurrencies is $2 trillion – their market cap is five times that.”
The Canaan vice president said his forecast is heavily influenced by the outcome of Bitcoin exchange-traded fund applications filed with the U.S. Securities and Exchange Commission by some of the world’s largest asset managers.
“The money will come in, the demand for Bitcoin will increase, and the supply will decrease, and the price will increase.”
Hui also pointed out that it has become difficult for most miners to continue operating under fiercely competitive market conditions, and that historic computing power and network difficulties have directly eroded miners’ profitability.
He said those who cannot pay their electricity bills with Bitcoin mining rewards will simply shut down the machines, while those who continue to operate will do so in order to gain potential upside ahead of the 2024 halving.
Miners who are able to upgrade to more efficient and powerful machines are able to maintain better profitability, he said. Xu predicts that U.S. mining companies may face particularly difficult pressures due to high power and management costs.
Hui also admitted that Canaan was among the industry companies to report financial losses in the first quarter of 2023, highlighting the impact of the long-term cryptocurrency bear market.
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