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Leading mining and crypto asset production company executives believe that the market strengthening resulting from the fourth Bitcoin halving event scheduled for 2024 could push the price of Bitcoin above $100,000. Canaan, one of the industry companies affected by the crypto bear market, reported a financial loss in the first quarter of 2023. It is emphasized that mining companies in the US may face difficulties and that long-term market trends are important.
Bitcoin Demand Will Increase and Price Will Rise
Following a panel held at the Avalon Bitcoin and Crypto Day in Singapore, Canaan Vice President Davis Hui shared a price prediction of around $100,000 for BTC in 2024 due to the effects of the latest Bitcoin mining reward halving. This prediction made a big impact at the panel, which included Bitcoin mining ecosystem managers from Singapore, Kazakhstan, and the United Arab Emirates.
Hui stated that Bitcoin supply will decrease significantly and the reward will be reduced to 6.25 BTC per block, while traditional financial institutions have shown increased interest in investing in the industry:
“BlackRock holds $10 trillion in assets under management. They have more than five times the total cryptocurrency market value, which is $2 trillion.”
The Canaan Vice President said that his prediction was largely influenced by a series of Bitcoin exchange-traded fund applications made to the US Securities and Exchange Commission by some of the world’s largest asset managers.
“As supply decreases, Bitcoin demand will increase and the price will rise.”
Challenging Times for Mining Companies
Hui also mentioned that it has become increasingly difficult for most miners to continue operating in highly competitive market conditions, with all-time high hash rates and network difficulties directly impacting miner profitability. He said that those who cannot cover their electricity expenses with the earned Bitcoin mining rewards will shut down their machines, while those who continue their operations will do so considering the potential surge before the halving event in 2024.
Hui also predicts that mining companies in the US, especially, may struggle due to high electricity and administrative costs. He acknowledged that Canaan was among the industry companies reporting a financial loss in the first quarter of 2023, emphasizing the impact of a prolonged crypto bear market.
