Top Crypto Influencer Warns Bitcoin Miners of Potential Bankruptcy if Bitcoin Trades Below $80K
Bitcoin Mining Profits at Risk Post-Halving, Warns Kenn Bosak
With the Bitcoin halving just a week away, the cryptocurrency’s price has stabilized around $70,000, indicating a calm before the upcoming event. However, as the mining difficulty reaches an all-time high, miners are concerned about their profits after the halving.
Kenn Bosak, a seasoned crypto influencer, believes that Bitcoin needs to stay above $80,000 post-halving to ensure mining remains profitable. Otherwise, miners could potentially face bankruptcy. Bosak presents three possible scenarios based on the current price performance of Bitcoin.
The first scenario is that Bitcoin remains above $80,000, ensuring profitability for miners. This threshold is crucial for covering operational costs and maintaining a sustainable mining ecosystem.
The second scenario is a sharp price decline, with Bitcoin crashing below $80,000. In this case, miners may encounter financial difficulties and even face bankruptcies. However, Bosak suggests that institutional money could step in to acquire struggling mining operations, consolidating the industry under larger entities.
The third scenario involves a temporary dip in Bitcoin’s price below $80,000. However, if the cryptocurrency demonstrates resilience due to mass adoption and institutional support, miners could potentially receive a bailout similar to traditional bank interventions.
Renowned crypto analyst Rekt Capital also weighs in on Bitcoin’s future. He observes that Bitcoin is entering a re-accumulation phase as the halving event approaches. Based on historical price data, Rekt Capital identifies a pattern similar to the 2020 halving cycles, where Bitcoin ranged around $14,000 before surging to an all-time high of $69,000 in 2021.
Drawing parallels with past patterns, Rekt Capital predicts a potential surge to $130,000 or higher if history repeats itself.
Currently, Bitcoin stands at $70,838, experiencing a slight decline over the past 24 hours. However, its market cap remains at $1.39 trillion.