CleanSpark CEO Predicts Bitcoin Price Surge to $200,000 Amidst Industry Developments

In a recent interview with Bernstein analysts, CleanSpark CEO Zach Bradford shared a bullish outlook for Bitcoin, predicting that the cryptocurrency could reach nearly $200,000 within the next 18 months. 

Bradford’s forecast comes amid growing optimism surrounding the leading crypto’s post-halving period and evolving market conditions, further positioning Bitcoin as a major player in the digital asset space.

Bitcoin’s Next Peak: $200,000 Within 18 Months?

Zach Bradford’s analysis, delivered to Bernstein’s Gautam Chhugani in a note to clients, highlights an ambitious peak for the crypto. According to Bradford, BTC could peak at just under $200,000 during this cycle, likely within the next year and a half. He anticipates a rapid surge in Bitcoin’s value, followed by an extended period of elevated prices before the market potentially enters another bear cycle.

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Bradford believes that Bitcoin’s prolonged flat price period has laid the groundwork for sustained growth, which could be extended further if favorable macroeconomic events align. However, he cautions that external factors, such as global market trends and geopolitical events, could influence the timing and magnitude of this anticipated price increase.

The Halving Effect and Election Impact on Bitcoin

Historically, the flagship crypto’s price experiences positive adjustments following its halving events, which reduce the reward miners receive for validating transactions. These halvings, combined with the influence of capital flows and election cycles, play a crucial role in determining BTC’s trajectory. Bradford suggests that the post-halving period could act as a catalyst for Bitcoin prices, with a significant push likely beginning after the upcoming US presidential election in November 2024.

Also read: Is Crypto Dead? Analyzing the Current State and Future Potential of Cryptocurrency

Interestingly, Bradford notes that the election’s impact on BTC prices is not necessarily dependent on who wins. Instead, the conclusion of the election and the resulting reduction in market uncertainty could positively influence Bitcoin’s value. Additionally, he predicts that the Federal Reserve’s monetary policy—specifically more aggressive interest rate cuts—could further support Bitcoin’s growth over the next 15 to 16 months.

Bitcoin vs. AI Mining: Why BTC-Focused Miners Are Underrated

Bradford also addressed the growing competition between BTC mining and AI-diversifying miners, such as Core Scientific and Terawulf. While AI-focused miners have outperformed their Bitcoin-centric peers this year, Bradford argues that pure-play Bitcoin miners are currently underrated. He points out that Bitcoin mining infrastructure offers faster returns, with a much shorter time to energization and cashflows compared to AI data centers, which have longer gestation periods.

Pure-play BTC miners have significantly lower capital expenditures, allowing them to energize faster and generate cash flows within weeks rather than years. Despite the volatility associated with BTC, Bradford believes timing the market effectively is key. CleanSpark, for example, has employed a strategy of selling mined Bitcoin near market peaks and accumulating during downturns.

Since June 2023, CleanSpark has held onto 97% of its mined Bitcoin, amassing nearly 8,000 BTC, worth approximately $509 million at current prices. The company plans to sell its holdings during future bull markets to fund non-dilutive growth.

Immersion Cooling: The Future of Bitcoin Mining

As the BTC mining industry evolves, advancements in mining equipment are expected to drive efficiency. Bradford predicts that the next generation of mining chips will achieve an efficiency of 11 joules per terahash (J/TH), marking a significant milestone for the industry. However, this increase in efficiency will likely lead to changes in the form factor of mining machines due to higher power intensity and heat generation.

To address this challenge, CleanSpark is focusing on immersion cooling technology, which Bradford believes will become essential as mining fleets reach an efficiency of 15J/TH. Immersion cooling offers several advantages, including reduced noise pollution, which could help miners gain approval from local authorities for new mining sites. Additionally, Bradford foresees increased competition in the mining equipment market, with companies like Bitdeer and Block (founded by Jack Dorsey) challenging Bitmain’s dominance, potentially driving down the cost of mining equipment.