Edwards anticipates that the historic price floor of will reach $41,200 in just five months. He draws this takeaway from Bitcoin’s electrical cost, the raw energy cost of mining Bitcoin, which he believes will double overnight, possibly in April 2024.
The Capriole Fund founder believes this certainty might cause inefficient miners to begin shutting down as the Bitcoin reward halves.
Eleven years ago today, the first Bitcoin halving occurred. Subsequent halvings took place in 2016 and 2020, and the next one is expected in April 2024.
According to Edwards, the electrical cost has bottomed out at +65% and +50% of pre-halving values in the last two halvings. If this happens again and the electrical cost bottoms out at +50% this time, Edwards predicts that Bitcoin’s historic price floor will be $41,200 in just five months.
One of the most anticipated events on the Bitcoin calendar is the halving event, which occurs every 210,000 blocks and slows the rate of new currency issuance by 50%. The next BTC halving is set for a block height of 840,000; however, the actual date and time are unknown.
Based on the current average block interval, Glassnode, an on-chain analytics start-up, anticipates a likely date of April 23, 2024.
Expectations are rising ahead of this event, which has positive implications both before and after it. In prior cycles, Bitcoin had an yearly return profile of over 400% following the halving event. However, past results do not guarantee future outcomes.
Bitcoin (BTC) was up 0.35% to $37,191 at the time of writing.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
