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Bitcoin to Reach Nearly $200,000 in 18 Months, Says CleanSpark CEO

AInvestTuesday, Oct 1, 2024 12:22 am ET
1min read
CleanSpark CEO Zach Bradford has predicted that Bitcoin could reach nearly $200,000 in the next 18 months, driven by a combination of regulatory developments, supply dynamics, and growing institutional interest. Bradford's bullish outlook is supported by several key factors, including the potential approval of Bitcoin ETFs, the impact of Bitcoin's halving event, and the increasing adoption of Bitcoin by institutional investors.


The potential approval of Bitcoin ETFs is expected to open the door to institutional investment, as these funds will provide a more accessible and regulated way for investors to gain exposure to Bitcoin. Bradford believes that the approval of Bitcoin ETFs by major asset managers such as BlackRock, Fidelity, and Franklin Templeton could result in around $190 billion in assets under management, compared to the current $60 billion. This influx of institutional capital could significantly drive up the price of Bitcoin.


The recent halving event in April 2024 has also contributed to Bradford's bullish outlook. As the miners' block subsidy reward halved from 6.25 BTC to 3.125 BTC, the new supply of Bitcoin dropped from an average of 900 BTC per day to 450 per day. This reduction in supply, combined with increasing demand, is expected to put upward pressure on the price of Bitcoin.

Bradford's prediction aligns with historical Bitcoin price cycles and trends. In previous cycles, Bitcoin has rallied to a high of approximately 5 times the marginal cost of production before bottoming out at a low of 0.8 times the marginal cost. Bradford expects Bitcoin to rally to 1.5 times its marginal cost of production in the current cycle, implying a cycle high of $200,000 by mid-2025.


The growing institutional interest in Bitcoin is another key factor driving Bradford's prediction. As more institutional investors and global asset managers adopt Bitcoin, the demand for the cryptocurrency is expected to increase. This trend is further supported by the increasing allocation of Bitcoin in institutional portfolios and the growing number of financial advisors allocating a portion of their portfolios to Bitcoin ETFs.

Bradford's prediction of Bitcoin reaching nearly $200,000 in the next 18 months is significantly higher than many other Bitcoin price targets from analysts and industry experts. However, his bullish outlook is supported by a combination of regulatory developments, supply dynamics, and growing institutional interest. If Bradford's prediction proves accurate, it could have a significant impact on investor sentiment and Bitcoin's market performance.
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