Jeremie Davinci predicts Bitcoin could hit $350K, linking the forecast to its historical ties with mining costs and market performance trends.
Jeremie Davinci, a cryptocurrency influencer and one of the earliest adopters of Bitcoin, has recently shared a prediction about the future price of the dominant crypto.
Jeremie Davincipredicted that the price of Bitcoin could reach $350,000, but he did not provide a specific timeline for this prediction.
His analysis is based on the historical performance of BTC and its correlation with mining costs.
According To Early Adopter Jeremie Davinci, Bitcoin Price Could Increase To $350,000
Jeremie Davinci recently shared his viewpoint on the prospective price trajectory of Bitcoin in a post on X (formerly Twitter).
He underscored the correlation between the cost of mining a single Bitcoin and its eventual market value.
Bitcoin has historically exhibited the capacity to surmount its mining cost by a factor of five during bull market cycles, as per Davinci.
The current estimated cost of mining one Bitcoin is $70,000, which is based on the expenditures that miners incur when utilizing low-cost energy sources and advanced equipment.
Davinci predicted that Bitcoin could ultimately reach $350,000 if historical trends continue, based on this metric.
He emphasized the immense potential of Bitcoin, citing its distinctive characteristics as a digital asset that combines scarcity and utility.
Davinci did not specify a specific timeline for his forecast, opting to concentrate on the factors that affect the price of Bitcoin.
He emphasized that his projection is based on historical patterns rather than short-term speculation.
Moreover, this forecast is made in the context of the increasing influence of institutions in the Bitcoin market, as they have amassed $100 billion in BTC, including BlackRock, MicroStrategy, and Fidelity.
Their aggressive purchasing behavior indicates their conviction in the long-term growth potential of Bitcoin.
Correlation Between BTC, Mining Costs Is Expounded
The prediction of Jeremie Davinci is based on the close correlation between the price of Bitcoin in the market and its mining cost.
The costs of mining are determined by the resources necessary to secure the blockchain and validate transactions, such as electricity and specialized equipment.
These expenditures frequently establish a benchmark for the price of Bitcoin as they increase.
In the past, the price of Bitcoin has consistently outperformed its mining costs during robust periods.
For example, Bitcoin’s valuations have risen to levels that exceed the breakeven point for miners in previous cycles.
Davinci observed that this trend illustrates the economic incentives that are incorporated into the cryptocurrency’s design.
The price trends of Bitcoin are significantly influenced by the dynamics of its supply.
The block reward for miners was reduced to 3.125 BTC following the most recent halving event in April 2024.
Halving events, which occur every four years, are intended to decrease the rate at which new Bitcoin is generated, thereby limiting the total supply to 21 million coins.
The asset’s scarcity is further exacerbated by the fact that the remaining supply is restricted, with nearly 20 million Bitcoins already mined.
In the past, the Bitcoin price has frequently experienced upward momentum following BTC halving events as a result of reduced supply pressure.
Market Sentiment In Context Of Price Changes
Although Jeremie Davinci’s forecast is optimistic, Bitcoin’s recent market performance has been characterized by volatility.
Earlier this week, Bitcoin experienced a decline below $96,000 after climbing to $102,000, which elicited a variety of responses from market participants.
Robert Kiyosaki, a renowned investor, praised the decline, describing it as a chance to accumulate at a reduced cost.
Additionally, analysts have endorsed the “buy the dip” narrative by utilizing historical trends and current market signals.
The Spent Output Profit Ratio (SOPR) indicator from CryptoQuant, which is presently at 0.987, indicates that short-term Bitcoin holders are selling at a loss.
Historically, a market rebound has frequently been preceded by such circumstances.
The suffering that these short-term investors experience, according to CryptoQuant analyst MAC.D, typically indicates an opportune moment for accumulation.
Bitcoin is currently trading at approximately $94,100, demonstrating its resilience in the face of short-term corrections.