Bitcoin Miners Could Face Bankruptcy, If Bitcoin Trade Below $80K Says Top Crypto Influencer

12 April 2024

in Mining

Reading Time: 2 mins read

As the Bitcoin halving is just 7 days away, the cryptocurrency’s price has stabilized at around $70,000, showing calmness before the upcoming event. But as mining difficulty reaches an all-time high, miners are worried about their profits after the halving.

In the meantime, Kenn Bosak, a seasoned crypto influencer, believes Bitcoin needs to stay above $80,000 post-halving to keep mining profitable, or miners could face bankruptcy.

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Why Bitcoin To Trade Above $80K

According to Bosak, there are three possible scenarios based on the current bitcoin’s price performance

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Bitcoin Remains Above $80K

In this scenario, Bitcoin maintains its price above $80,000, ensuring profitability for miners. This threshold is essential for covering operational costs and ensuring a sustainable mining ecosystem.

Bitcoin Crashes…

If Bitcoin experiences a sharp price decline, falling below $80k, miners may face financial difficulties, potentially leading to bankruptcies. As Bitcoin mining difficulty recently reached unprecedented levels, hitting the 86.39 trillion hash mark ahead of the BTC halving

However, Bosak suggests that institutional money could step in to acquire struggling mining operations, consolidating the industry under larger entities.

Bitcoin Dips with Institutional Support

Alternatively, if Bitcoin experiences a temporary dip in price below $80,000, but demonstrates resilience due to mass adoption and institutional support, miners could potentially receive a bailout akin to traditional bank interventions.

Bitcoin Aim For Bigger Gain

Looking at the current state of Bitcoin, renowned crypto analyst Rekt Capital observes that Bitcoin is entering a re-accumulation phase as the halving event approaches.

Analyzing historical price data, Rekt Capital identifies a pattern similar to the 2020 halving cycles, where Bitcoin’s price ranged around $14,000 before surging to an all-time high of $69,000 in 2021.

Based on this analysis, if history repeats itself Bitcoin’s current price suggests a potential surge to $130,000 or higher, echoing past patterns seen before halving events.

Currently, Bitcoin stands at $70,838, showing a slight decline over the past 24 hours with a market cap remaining at $1.39 trillion.

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