Cryptocurrency influencer and Bitcoin $93,857.8Jeremie Davinci, one of the early adopters of , made a prediction about the future price of the leading cryptocurrency, Bitcoin. Davinci stated that the Bitcoin price could rise to $350,000, but did not clarify the timeline of this prediction. He based his analysis on BTC’s historical performance and its correlation with mining costs.
The Relationship between Mining Costs and Bitcoin
Davinci made this prediction based on the close relationship of Bitcoin’s mining costs to its market value. It currently costs approximately $70,000 to mine one Bitcoin. Davinci suggested that Bitcoin could reach $350,000 if past trends continue. He noted Bitcoin’s unique characteristics as a digital asset that combines scarcity and utility.
Increase in Corporate Investments
This prediction comes at a time when institutional interest in Bitcoin has increased, with major companies such as BlackRock, MicroStrategy and Fidelity purchasing $100 billion worth of BTC. These aggressive purchases signal confidence in Bitcoin’s long-term growth potential.
Market Reactions and Sentiment
Although Jeremie Davinci’s prediction paints a positive picture, Bitcoin’s recent market performance has shown volatility. At the beginning of last week, Bitcoin dropped from $102,000 to below $96,000. Investor Robert Kiyosaki evaluated this decline as an opportunity to accumulate at discounted prices.
Robert Kiyosaki: “The decline offers an accumulation opportunity for Bitcoin.”
Analysts also support the “buy on the downside” approach, using past trends and current market signals. CryptoQuant’s Spent Output Profit Ratio (SOPR) indicator is currently at 0.987, indicating that short-term Bitcoin holders are selling at a loss.
CryptoQuant analyst MAC.D noted that the difficulties experienced by these short-term investors are often a harbinger of a market recovery. At press time, Bitcoin is trading around $94,100 and remains resilient despite short-term corrections.
Bitcoin Supply Dynamics
The fact that almost 20 million Bitcoins have been mined contributes to the limited remaining supply and increased scarcity of the asset. After the last halving event in April 2024, the block reward given to miners was reduced to 3,125 BTC. Halving events occur every four years, reducing the rate of new Bitcoin production and limiting the total supply to 21 million coins.
After Bitcoin halving events, it is generally observed that there is an increase in price due to the decrease in supply pressure. These dynamics play a critical role in shaping Bitcoin price trends.
These developments in the Bitcoin market draw investors’ attention to long-term potential opportunities.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
