NEWSLETTER
The bitcoin market structure is evolving, and its four -year -old cycles that were once predictive no longer have the same relevance. In a recent conversation with <a target="_blank" href="https://x.com/BitcoinMagPro” target=”_blank”>Matt Crosbymain analyst in bitcoin Pro Magazine, <a target="_blank" href="https://x.com/MitchellHODL” target=”_blank”>Mitchell AskewMain analyst in Blockware The solutions shared their perspective on how bitcoin ETFs, mining advances and institutional adoption are remodeling the behavior of asset price.
Look at the full interview:
According to Askew, the historical pattern of bitcoin's parabolic price increases, followed by reduction reduction, is changing as institutional investors enter the market. At the same time, the mining industry is becoming more efficient and stable, creating new dynamics that affect the supply and price trends of bitcoin.
bitcoin market cycles are fading
ASKEW suggests that bitcoin can no longer experience the extreme cycles of the past markets of bulls and bears. Historically, the reduction of half of the events reduced miners' rewards, triggered supply shocks and rapid price increases fed, often followed by 70% or more corrections. However, the growing presence of institutional investors is leading to a more structured and promoted by macro market.
Explain that the bitcoin ETF point and <a target="_blank" href="https://www.bitcoinmagazinepro.com/charts/bitcoin-treasury-public-listed-companies/” target=”_blank” rel=”noopener”>Corporate Treasury Assignments They are bringing a constant demand to bitcoin, reducing the probability of extreme movements of boom and fall prices. Unlike retail merchants, which tend to buy in euphoria and sell panic during recessions, institutions are more likely to be sold in force and accumulate bitcoin in the casualties.
ASKEW also points out that since bitcoin ETFS was launched in January 2024, price movements have been measured more, with longer consolidation periods before continuous growth. This suggests that bitcoin is beginning to behave more as a traditional financial asset, instead of a high volatility speculative market.
<h2 class="wp-block-heading" id="the-role-of-bitcoin-mining-in-price-stability”>bitcoin mining role in pricing stability
As a Mining Analyst in Blockware Solutions, ASKEW provides information on how bitcoin's mining dynamics influences price trends. He points out that, although many assume that a rising hash rate is always optimistic, the reality is more complex.
In the short term, the increase in the HASH rate can be bassist, since it leads to greater competition among miners and more bitcoin is sold to cover electricity costs. However, in the long term, a growing hash rate reflects a greater investment in bitcoin infrastructure and network safety.
Another key observation of ASKEW is that the growth of the bitcoin hash rate is left behind the price growth in 3-12 months. When the price of bitcoin increases considerably, mining profitability increases, which leads more capital to flow towards mining infrastructure. However, the implementation of new mining platforms and the creation of facilities takes time, which leads to a delayed impact on the expansion of the hash rate.
Why the mining profitability is stabilizing
ASKEW also emphasizes that the efficiency of mining hardware is reaching a plateau, which has significant implications for miners and the bitcoin supply structure.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter“>
In bitcoin's early years, the new mining machines offered dramatic efficiency improvements, which forced the miners to update hardware every 1-2 years to remain competitive. Today, however, the new models are just 10% more efficient than the previous generation. As a result, mining platforms can now remain profitable for 4-8 years, which reduces pressure on miners to continuously reinvest in new equipment.
Electricity costs remain the most important factor in mining profitability, and Askew explains that miners are increasingly looking for more low -cost energy sources to maintain long -term sustainability. Many companies, including blockware solutions, operate in Rural Locations in the USA with stable energy prices, which guarantees better profitability even during market recessions.
<h2 class="wp-block-heading" id="could-the-u-s-government-start-accumulating-bitcoin“>Could the United States government start accumulating bitcoin?
Another important discussion point raised by ASKEW is the potential for a strategic bitcoins reserve of the United States (SBR). Some policy formulators have proposed that the United States government accumulate bitcoin in the same way that it has gold reserves, recognizing its potential as a global value reserve.
ASKEW explains that if this reserve was implemented, it could create a massive supply shock, which pushes the price of significantly higher bitcoin. However, he warns that government action is slow and would probably imply a gradual accumulation instead of sudden purchases on a large scale.
Even if it is implemented for several years, this program could further reinforce bitcoin's long -term bullish trajectory by eliminating the available market supply.
<h2 class="wp-block-heading" id="bitcoin-price-predictions-long-term-outlook”>bitcoin pricing predictions and long -term perspectives
According to current trends, Askew remains optimistic in bitcoin's long -term pricing trajectory, although he believes that market behavior is changing towards a more gradual and sustained growth instead of extreme speculative cycles.
bitcoin Targets for 2025:
- Base case: $ 150K – $ 200K
- Bull case: $ 250k+
Long -term forecast (10 years):
ASKEW sees several key factors that drive bitcoin's price during the next decade, including:
Constant institutional demand of ETF and corporate treasures.
Reduced mining hardware updates, which lead to a more stable industry.
Potential Government participation in bitcoin reserves.
Macroeconomic conditions such as interest rates, inflation and global liquidity cycles.
It emphasizes that, as the structure of the mature bitcoin market can be less susceptible to prices changes, which makes it a more attractive long -term asset for institutions.
<h2 class="wp-block-heading" id="conclusion-a-more-mature-bitcoin-market”>Conclusion: a more mature bitcoin market
According to Askew, bitcoin is experiencing a structural change that will shape its price trends in the coming years. With institutional investors that reduce market volatility, mining innovations that improve the efficiency and adoption of potential government, bitcoin market behavior is beginning to resemble gold or other long -term financial assets.
While dramatic parabolic races can become less frequent, bitcoin's long -term trajectory seems stronger and more sustainable than ever. ASKEW's perspective reinforces the idea that bitcoin is no longer just a speculative asset: it is evolving a key financial instrument with increased global adoption.
If you are interested in a deeper analysis and data in real time, consider checking bitcoin Pro Magazine For valuable information about the bitcoin market.
Discharge of responsibility: This article is only for informative purposes and financial advice should not be considered. Always do your own research before making investment decisions.
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>
