The upcoming Bitcoin halving in April 2024, which will reduce block rewards from 6.25 to 3.125 BTC, is expected to affect miner profitability. Anthony Scaramucci of SkyBridge Capital predicts a rise to $170,000 per coin after Bitcoin halving as his conservative price target.
One of the major events that the Bitcoin community is eagerly awaiting is the upcoming Bitcoin halving scheduled for mid-April 2024. The fourth Bitcoin halving will reduce the block rewards by 50%, from the existing 6.25 BTC per block mined to 3.125 BTC per block mined.
According to estimates, this is likely to affect the efficiency and profitability of Bitcoin miners. The existing revenue model for miners relies on transaction fees and block rewards, with the latter being a crucial component of their earnings. A recent analysis conducted by CoinShares and published on BTC-ECHO revealed that, after the upcoming Bitcoin halving, only five out of the fourteen miners surveyed are expected to remain profitable.
Despite the challenges posed by the impending halving, the introduction of innovative technologies, such as ordinals on the Bitcoin network, has shown the potential for continued innovation within the space. Although the use of ordinals led to a spike in miner fees in early 2023, the momentum has waned since then.
To address concerns about the environmental impact of Bitcoin mining, efforts to explore more sustainable practices have led to the rise of Bitcoin cloud mining. This approach, while not without its drawbacks, offers potential efficiencies in reducing energy consumption and technological waste associated with traditional mining methods.
Bitcoin cloud mining also appeals to a growing user base, providing easy accessibility to Bitcoin mining without the need for specialized equipment purchases or setups. The industry is currently attracting increasing interest as it evolves to meet the changing dynamics of the Bitcoin mining landscape.
Bitcoin price expectations after halving
Historically, the past three Bitcoin halving events have turned out to be absolutely bullish for the cryptocurrency leading to strong price rallies for Bitcoin. The expectations are about the same this time too. Some market analysts believe that Bitcoin could rise past $100,000 after it is halved.
Anthony Scaramucci, the founder of SkyBridge Capital, has shared his optimistic forecast for Bitcoin (BTC), predicting that the next halving event will push the cryptocurrency’s price to $170,000 per coin.
Scaramucci’s estimate is rooted in Bitcoin’s historical tendency to reach new highs after each halving, a cyclical event that occurs roughly every four years and results in a 50% reduction in the rate of new BTC production. During a recent podcast with Scott Melker, he said:
“Go back and look at Bitcoin halving cycles. The day Bitcoin halves, multiply it by four [and]18 months later and it was strange that it was the price of Bitcoin.”
Taking a longer-term perspective, Scaramucci confidently asserts that Bitcoin will easily reach half the market capitalization of gold, which currently stands at $13.6 trillion. This projection implies a Bitcoin price of at least $323,000 per coin. The financial expert considers his current estimate of $170,000 to be conservative, with the calculation based on Bitcoin’s price being $35,000 at the time of the halving, scheduled for April 2024.
Scaramucci previously made headlines by revealing that his fund was the first outside investor to buy shares of BlackRock’s Bitcoin spot ETF, a move that occurred before the ETF received approval on January 11.
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