BTC miner price approaching $65K means profitability for the ecosystem

Bitcoin profitability has fluctuated throughout the year, leaving investors worried about what the future holds for digital gold. It’s not difficult to see where they’re coming from since 2022 has been an exceedingly difficult year for the market. Prices plummeted by over 60%, and BTC ended the year poorly. Since then, Bitcoin has been making slow but steady steps towards recovery. Buy Bitcoin p2p has become popular again as investors add coins to their portfolios to consolidate their earnings before the next bull market arrives.

At that point, the prices will be too elevated to allow sustainable purchases for the more significant portion of investors, so any accumulation must occur until that point. Most traders have high hopes and expectations for crypto the following year, which are mostly realistic, considering the trend has so far favored development. 

a bitcoin sitting on top of a computer chip

Image source: https://unsplash.com/photos/a-bitcoin-sitting-on-top-of-a-computer-chip-8TEpTK7363I 

Miners 

While a lot of focus is traditionally placed on investors when it comes to crypto markets, the behavior and movements the miners make are just as important, and will typically act as a solid indicator of the health and future of the market. Starting from around the middle of October, Bitcoin miners have continued reducing their balances. Their efforts have been continuous and unyielding, leading the latest data to show that the balance in miner wallets has declined by a whopping 700 coins.

And that is just the reduction that occurred in the span of twenty-four hours between December 27th and December 28th. Compared to October, the balances are down by almost 13,000 coins. Bitcoin has been consolidating during the same timeframe, moving from $30K to $45K, breaching the resistance level at $40,000 to achieve new goals. So, what’s going on with these miner reductions? The miners have enjoyed considerable boosts to their revenue during Q4, mainly because of the influence of the Ordinals.

At the moment, the sector remains profitable, and so all the movements, shifts and changes that occur are because the miners are looking to consolidate their positions and secure their gains.

The halving 

In 2024, Bitcoin will undergo a new halving event. It is expected sometime during April and set to have considerable effects on the marketplace and price points. This is similar to its predecessors, who also left their mark on the ecosystem. Traditionally, prices grow quite a lot before and during the halving, but especially in the aftermath. The most considerable effects can be noticed anywhere between six to twelve months after the halving.

Most bullish investors eagerly await this period, viewing the BTC market as stagnant and dull. Despite the growth, there have been losses as well, and the halving would remedy them. The previous halving of 2020 took prices to their all-time high level of the following year. At that time, Bitcoin had almost reached $70K. Those values haven’t been reclaimed yet, but most investors expect them to be surpassed in 2025.

Participants see it as a cornerstone in the entire history of Bitcoin, meaning that this halving might behave differently compared to the previous ones. Ideally, it will be stronger and take the values further than initially anticipated. Right now, the most popular prediction says BTC will climb to $80,000. However, the more optimistic batch of investors is eyeing the $100K level. Some believe that this value is long overdue and that Bitcoin could have achieved it, but regulatory pressures kept it in a headlock.

Concerning the miners, the predictions currently say that they might attempt to hoard stocks in advance. It will be a transition period for all Bitcoin users and everyone else involved in the market in any form. Bitcoin is overall set to mature and become more relevant, and many expect it to dethrone gold from its position as the best store of value.

ETF approval 

It’s not just the halving that will drive prices up, but a potential ETF approval as well. This asset class has been widely discussed and debated over the past couple of months. However, the discussions have stopped there because, so far, the Securities and Exchange Commission hasn’t issued an official ruling on the matter. Several high-profile companies are also involved in the proceedings, as they’ve designed their own crypto-based products and are eagerly awaiting to launch them.

BlackRock, the largest asset manager in the world overseeing nearly $10 trillion worth of holdings, is one of these companies. At the moment, investors believe the most probable date to receive an answer is January, perhaps during the latter half of the year. The prices are expected to expand a lot following this episode. The reason is very simple: better accessibility. The ETFs will allow both individual and retail investors to trade without having direct ownership of BTC.

But some analysts have begun discussing the possibility of the price dropping before starting to climb again. There’s the potential of a correction at the $32,000 level, a substantially low value compared to the December values. The event would be what is referred to as “sell the news”, a situation that generally occurs when the unrealized profits of traders are situated somewhere at a level that precedes corrections.

Sentiment and asset prices go up in the months leading up to a bullish tendency, but the prices lose a considerable amount of their value shortly after as part of the stabilizing process. This generally occurs because traders know to capitalize on the long trade, forcing anyone with leverage to either close or become liquidated. This is pretty much an overview of the current market, as positive sentiment surrounding an ETF approval has driven sentiments up.

The bottom line 

Although 2024 is very near, it’s impossible to make a 100% accurate prediction of how the prices will change during the following year. The Bitcoin market is quite sensitive to changes, both internal and external. The geopolitical situation and the macroeconomics play an essential role, and they’re not doing very well at the moment. It’s important to remember that Bitcoin tends to do quite well during times of crisis as investors move towards asset classes that can help them retain value.

It’s paramount to remain aware of the shifts and fluctuations to avoid the possibility of losing more than you gain. Patience and astuteness are key.