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Tuesday, June 11, 2024
HomeCryptoEconomist reveals year-end forecast for BTC price

Economist reveals year-end forecast for BTC price

Economist Timothy Peterson shared his year-end Bitcoin price prediction with his followers in his statement.

Economist Timothy Peterson suggested in a recent analysis that difficulty growth rate of Bitcoin suggests that BTC price may increase 100,000 USD later this year.

Bitcoin’s difficulty rating is adjusted every two weeks to ensure blocks are added approximately every 10 minutes.

According to Peterson, Bitcoin difficulty is closely related to its price. As difficulty increases, the energy cost per Bitcoin mined also increases, forcing miners to balance electricity and hardware costs with rewards.

The high price of Bitcoin makes these costs affordable, making mining profitable even as difficulty increases. Conversely, a price drop could force some miners to quit, reducing computing power and difficulty.

According to Peterson, higher prices increase difficulty by attracting more miners, which could support even higher prices. Conversely, higher difficulty and associated costs motivate miners to increase efficiency and support higher prices as the network becomes more powerful. The market strives to achieve an equilibrium where energy costs are balanced with Bitcoin prices.

Given these dynamics and current trends, Peterson predicts a reasonable year-end Bitcoin price range would be 60,000 USD to 90,000 USD.

High difficulty levels suggest strong cybersecurity supports higher prices, while energy costs also create a price floor. However, strong adoption potential and positive market sentiment could push the price even higher, up to $100,000.

The positive report on cryptocurrencies comes from the oldest US bank BNY Mellon

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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