The cryptocurrency market had a difficult year in 2022, but some experts believe it is now showing signs of recovery, particularly with the strong rally of bitcoin.
When bitcoin’s price fell to $16,000 in late 2022, profits for miners were reduced, according to Andy Long, the CEO of White Rock Management. However, bitcoin’s recent price increase of 39% to around $23,000 is a positive sign, as it means margins are expanding, says Christian Lopez from Cohen & Company Capital Markets.
Although the value of bitcoin is still lower than its year-ago price of $44,100, some in the industry see it as a positive sign for the future. Long stated that a year from now, they may be looking at an all-time high, potentially even over $100,000 by the end of 2024.
The recent increase in bitcoin’s price has relieved pressure on many miners and has made their margins look much healthier, according to Christopher Bendiksen from CoinShares.