Bitcoin price must reach at least $98,000 after halving

The next bitcoin halving is expected to take place in April or May next year. According to this will Bitcoin miners You only get half the current reward for each mined block, halving Bitcoin’s inflation. This means that unless the Bitcoin price starts to rise sharply, it will become significantly more difficult for miners to remain profitable.

Bitcoin mining stocks can fall sharply.”

Bitcoin miner Riot Platforms (RIOT) writes in an analysis. I’m looking for Alpha that the company will need a bitcoin price of at least $98,000 after the halving in 2024 to justify the current share price.

Like many other miners, Riot wants to expand production capacities in order to remain as competitive as possible. In the case of this US producer, the target is 35 exahashes per second (EH/s), but even then, such a high price is a prerequisite for the stock not to plummet.

The production costs are now at $41,700 according to Seeking Alpha for Riot. Bitcoin price is currently around $29,100, so Riot is making a loss on the coins it mines. But the analysts are not negative on all points. Seeking Alpha also expects Bitcoin price to rise. Even if 2025 were a bear market, a bitcoin price of $75,000 would be obvious.

So this is lucky. But the bitcoin halving is giving us a hard time. As the number of coins for a given mining capacity is halved by 2024, annual profit is expected to drop to $197 million. That would mean Riot stock should have a market value of around $1 billion by then. But right now, the company is worth $3.11 billion. That would mean that the halving would see the price fall by almost 68%.

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Many miners are badly off

Even if the company does not expand its production capacity, Seeking Alpha believes that a significant drop cannot be avoided. Unfortunately, according to the business newspaper, it won’t stop there. Of the listed miners, Riot has relatively low production costs. That means many other miners may have an even harder time.

In July, JP Morgan expected the same – the halving would be a “hard test” for miners. How many miners are expected to make it is still very uncertain.

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