Fundstrat has laid out a new price prediction for Bitcoin and this time, it is foretold by analysts to be as high as $64,000 by next year. The price prediction is captivating because it is based on the growth of mining activity.
Fundstrat predicts that the harsh power used to produce the crypto will deliver a huge 350% through 2019.
Head of data research, Sam Doctor revealed in a report:
“We believe the current path of hash power growth supports a BTC price of about $36,000 by the 2019 year end, with a $20,000-$64,000 range.”
In the report, which we share from CNBC, it’s noted that the economics of Bitcoin mining will probably create a support level for the cryptocurrency.
Bitcoin miners are expected to hold their crypto as long as the price doesn’t fall below break-even for operating costs. Then they’ll sell as price rises, which helps them acquire a higher profit.
Thursday, during a conference call, Doctor said:
“The primary net sellers, in our view, are bitcoin miners, and the rest are transactions between investors.”
Antminer is one of the popular mining machines used. Fundstrat calculated that as of May 6, the cash break-even price for the older Antminer S7 model was $6,003 per bitcoin and $2,368 for the newer Antminer S9.
Big hardware is expected in a new generation which Doctor said should cause a new round of capital expenditures. It should result in a hash power growth, which could exceed if Bitcoin’s price rises.
Fundstrat’s founder, Tom Lee brought about this mining report form a report about an upcoming price rally.
Lee has appointed to next week’s Consensus 2018 Conference as a reason Bitcoin’s price could rise significantly. The conference is slated to run from May 14 – May 16.
We announced earlier this week about Lee believing that Bitcoin’s low price (around $9,102 at the time of writing Thursday) combined with the fact that Bitcoin has always shoed symbolic gains (between 10% – 70%) during and after previous Consensus conferences, means the stage is set for another Bitcoin rally.