Last year was tough for cryptocurrency markets as many prices plummeted. But bitcoin has had a strong rally so far this year, and some mining experts see this as an opportunity for the space to stage a comeback.
When bitcoin prices dropped to $16,000 in late 2022, profits were getting squeezed, Andy Long, CEO of bitcoin mining-focused White Rock Management, told TechCrunch. However, things may be looking up: Bitcoin’s price has increased about 39% to around $23,000 year to date, according to CoinMarketCap data.
That means margins are expanding, said Christian Lopez, director of fintech investment banking and head of blockchain and digital assets at Cohen & Company Capital Markets.
The cryptocurrency is still down from around $44,100 on the year-ago date, but industry members see a silver lining. “If you said to someone this time last year, ‘How would you feel about $23,000 for bitcoin?’ They would be horrified,” Long said. “We have fairly short memories, so in a year’s time. we will look down the barrel, and we’ll be at or over an all-time high hopefully, and over $100,000 by the end of 2024.”
Given the bitcoin price increase, miners are breathing a collective sigh of relief, Christopher Bendiksen, Bitcoin research lead at CoinShares, told TechCrunch. “The price recovery has relieved the worst pressure from many miners, and margins are looking much healthier.”