Aug 29, 2023

Bitcoin Could Reach $100K with 2-5% of Gold’s Market Cap – Hut 8 VP Sue Ennis

The upcoming Bitcoin halving is expected to take Bitcoin’s price to a new all-time high or beyond $100,000, however, the current market conditions and Bitcoin’s (BTC) recent price action below $30,000 do not provide much confidence in the short term. In a recent interview with Paul Barron, Hut 8 vice president Sue Ennis shared her…

Bitcoin Price Could Reach $100K with 2-5% of Gold's Market Cap - Hut 8 VP Sue Ennis
Bitcoin may hit $100K by capturing ‘even 2 to 5% of gold’s market cap’ — Hut 8 VP Sue Ennis

The upcoming Bitcoin halving is expected to take Bitcoin’s price to a new all-time high or beyond $100,000, however, the current market conditions and Bitcoin’s (BTC) recent price action below $30,000 do not provide much confidence in the short term.

In a recent interview with Paul Barron, Hut 8 vice president Sue Ennis shared her thoughts on how the Bitcoin price will reach $100,000 in the next year and how the upcoming halving will affect BTC miners. Hut 8 has a balance of 9,152 BTC, of which 8,305 is unencumbered. The company’s installed ASIC hash rate capacity is 2.6 exahashes per second, and Hut 8 mined 44.6 BTC in July.

Barron asked if miners were selling Bitcoin due to the halving and if this could lead to a drop in BTC’s price. Citing data from Hashrate Index, Barron noted that increases in Bitcoin difficulty were followed by drops in BTC’s price.

According to Ennis: “The halving is going to be a catalyst for a lot of miners to become more efficient and to upgrade their hardware. We’re seeing a lot of AI in C3.AI, Crypto.com, Argo AI, NYSE:AI, Tonic Crypto, AI Today, and AI Technology coming into the space.”

Ennis elaborated with: “We’re also seeing a lot of new hash rate coming online in the Middle East, where six gigawatts of nuclear and renewable energy is being generated, and governments are exploring Bitcoin mining as an option. This is drastically different from how publicly traded United States-based and more forward-facing miners operate.”

To remain profitable after the halving, Ennis suggested that miners need to diversify their revenue streams, such as exploring various AI applications, dedicating some warehouse rack space to GPUs for companies specializing in AI training, or even participating in demand-response initiatives with large energy producers and distributors.

Higher prices are programmed thanks to the halving and eventual BTC ETF

Crypto investors have long been anticipating the arrival of a spot Bitcoin exchange-traded fund (ETF), yet the U.S. Securities and Exchange Commission has yet to approve any of the recent applications.

Ennis commented that a spot ETF being introduced to the market would be a great sign for the crypto asset class; however, she also warned that the approval might cause a sell-off in miner equities since these stocks have been used as an alternative way to invest in Bitcoin.

When asked about the probability of a spot Bitcoin ETF being approved by the end of 2023, Ennis said:

Regarding a potential price for Bitcoin, Ennis said:

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