Executives at major mining and manufacturing companies believe in market forces arising from Bitcoin’s fourth halving (BitcoinThe expected rise for 2024 could push the asset’s price above $100,000.
Magazine editor Andrew Fenton spoke with Canaan Vice President Davis Hui following a panel discussion at Canaan Avalon Bitcoin and Crypto Day (ABCD) in Singapore.
A group of Hui and mining ecosystem managers Singapore, Kazakhstan and United Arab Emirates They predicted that the BTC price will be around $100,000 in 2024 following the effects of the upcoming halving of mining rewards.
Related: Will Bitcoin Hit an All-Time High in 2025? New Price Forecast Reveals ‘Beginning of Bull Run’
Hui reminded Cointelegraph that the Bitcoin supply will decrease significantly, dropping the reward to just 3,125 BTC per block. Traditional financial institutions are showing increasing interest in investing in the sector:
“What about BlackRock? They have $10 trillion in assets under management. The total capitalization of the cryptocurrency market is $2 trillion: they have five times more.”
The Canaan vice president said his prediction was driven predominantly by the results of a series of Bitcoin exchange-traded fund filings filed with the U.S. Securities and Exchange Commission by some of the world’s largest asset managers.
“This money will come, as the supply decreases, the demand for BTC will increase and the price will increase.”
Hui also noted that the situation for most miners is now Continuing to operate in highly competitive market conditions is complexThe hash rate is at historic highs and network difficulties are directly impacting miners’ profitability.
Those who cannot cover electricity costs with the rewards they have won said that they will turn off their machines, while those who continue to work will do so by taking into account the potential benefits before the 2024 halving.
He stated that miners who can switch to more efficient and powerful machines will be able to achieve better profitability. Hui predicts that mining companies in the United States may be particularly challenged by high electricity and administrative costs.
Hui also acknowledged that Canaan was among the companies in the industry to post financial losses in the first quarter of 2023, highlighting the impact of a prolonged bear market in cryptocurrencies.
Translation by Walter Rizzo