Bitcoin’s Inevitable Fall to $45k Pushes Me to Bet on This Crypto Miner
My favorite crypto miner is a beneficiary of BTC's current overpricing.
Hi Friends!
Welcome to my new section: QUICK DIVES. I am sharing here my spontaneous views on certain assets that help you have ideas on what to do next in the market!
Today it’s about a classic (bitcoin) and a crypto miner (Hut 8). I will often write about quite unknown or forgotten companies as well.
Enjoy!
The price bottom for bitcoin lies around $45k per BTC (on a post-halving basis). The BTC mining cost is estimated by a research of $JPM . The cost of mining is a good reference and the BTC price tends to revisit it.
The chart is based on the previous cycle but our assumption is the same as the general crypto circle’s assumption: each BTC cycle repeats.
Unfortunately for recent bitcoin buyers, this means limited upside in the short term and 25% downside. The price is around $60k per BTC. The risk-reward ratio is therefore not the most attractive currently.
For now I would keep my exposure to my favorite crypto miner Hut 8 Corp. (I wrote about the company on Seeking Alpha, find it here).
Hut 8 is making hefty profits on its mining operations given the BTC price remains above its (highly efficient) cost of mining. I might consider increasing my altcoin exposure if BTC revisits its cost of mining, but in the meantime I will stick to my miner.
The price peak for bitcoin and altcoins in general is reached 12 to 18 months after BTC halving, which puts us well into next year. That gives us time to wait for better prices closer to the mining costs to accumulate crypto.
Feel free to share your own forecast. 💚🙏 Crypto is sufficiently speculative to have more than one view. 😉
Etcaetera