Bitcoin mining attains record levels as experts predict a historic 2024 surge. Analysts endorse buying Bitcoin six months before halving, slated for April 2024. Bitcoin’s value has soared over 100% since January 2023. Propelling its market cap past $700 billion, approaching the $1.5 trillion crypto market. Though shy of the 2021 $3 trillion peak, some analysts foresee the start of a new record-setting streak.
This week, Bitcoin’s hash rate, indicative of required computing power for transactions and mining, hit an unprecedented level. Showcasing a robust network. The surge in hash rate hints at potential price upticks, drawing more miners. State-backed and commercial entities are heavily investing in cryptocurrency mining; Tether plans a $500 million mining investment. While Forbes suggests Bhutan’s government is establishing a massive Bitcoin mining operation.
Data also reveals miners optimizing profitability by utilizing cheap energy sources. Reducing average BTC production costs by 35%, from $21,100 to $13,800. Fintech firm Fineqia International’s Matteo Greco highlights this as a marked improvement over challenges faced in 2022 and part of 2023.
In six months, Bitcoin will undergo a halving event, reducing new Bitcoin rewards to miners by half. Introduced by Satoshi Nakamoto in 2009 to curb inflation, these halvings, occurring roughly every four years, traditionally precede profitable times for crypto investors. Dutch trader PlanB advocates buying Bitcoin six months before a halving and selling 18 months after, historically outperforming ‘buy and hold.’ With the next halving in April 2024, the question arises: will this strategy prove successful once more?”
