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  • Thursday, 30 November 2023
GET READY FOR BITCOIN BULL MARKET – HASHRATE INDEX PREDICTS END OF BEAR MARKET IN 2023

GET READY FOR BITCOIN BULL MARKET – HASHRATE INDEX PREDICTS END OF BEAR MARKET IN 2023

WU Blockchain reported yesterday that professional mining data organization Hashrate Index has predicted that the current Bitcoin bear market will end in 2023.

It is now too early for another full-blown bull market to happen. The report also states that Bitcoin's hashrate growth will slow down and ASICs (application-specific integrated circuits) will become very cheap.

Bitcoin Mining Predictions for 2023
Yesterday, the Hashrate Index published a blog post with 10 predictions for Bitcoin mining in 2023. First Prediction noted that BTC price is the most important factor affecting the mining industry. The post pointed out that Bitcoin has seen similar bull and bear cycles in the past.

The price drop from the current high to the current low is 78%, similar to the peak declines of 85% and 84% seen in 2015 and 2018. Based on historical patterns, it seems likely. This bear market is coming to an end.

The second prediction on the list shows that the growth rate of hashrate, a measure of computing power used to mine Bitcoin, is expected to slow down in 2023. This is due to the mining economy. weak exploitation by 2022, does not provide incentive for capacity building. However, the expected hashrate increase in 2023 will largely consist of a capacity increase that was originally planned for 2022 but has been delayed.

The blog post's third prediction indicates that after a protracted bear market, some public bitcoin miners whose market capitalization falls below $50 million may choose to go private for a significant drop. including administrative costs.

Alternatively, some public miners may merge with others to share administrative costs and benefit from economies of scale.

The fourth prediction is that Bitcoin mining storage prices will drop as more infrastructure becomes available and miners who are no longer profitable will leave the industry.

With difficult economic conditions to exploit and increased competition, hosting providers will have to reduce prices to stay competitive in 2023. 5-10 Bitcoin Mining Predictions
The blog post adds that the ongoing bear market will force miners to use electricity more efficiently. Since electricity is the biggest long-term cost for miners, reducing administrative costs is the most effective way for them to reduce short-term costs.

Additionally, the price of ASICs (specialized hardware used to mine Bitcoin) is expected to become very low, although newer and more advanced machines will continue to cost more.

While ASIC prices are currently well below their peaks in 2021 or even early 2022, they are likely to fall further in 2023 unless the Bitcoin price increases significantly.

Additionally, the blog post predicts that many miners will struggle to maintain sufficient uptime or uptime for their mining operations due to high electricity prices. Additionally, some regulatory bodies in specific regions may continue to focus on the Bitcoin mining industry.

In 2023, miners are expected to focus on improving their financial stability and making more use of Bitcoin mining derivatives, financial instruments that allow them to manage risks related to unstable revenue from mining activities.

Related reading | Miners of 37,000 degrees Celsius will lose their jobs because of electricity cost debt of more than $7.8 million

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