CleanSpark CEO Zach Bradford emphasized that Bitcoin’s prolonged period of price stability could indicate a sustained upside in the coming months.
In a recent interview with analysts from Bernstein, CleanSpark CEO Zach Bradford projected that Bitcoin BTC $111 034 24h volatility: 0.8% Market cap: $2.21 T Vol. 24h: $21.14 B could reach a peak of nearly $200,000 within the next 18 months, according to The Block. This bold prediction underscores growing optimism among industry leaders about the cryptocurrency’s future trajectory.
“Based on my current analysis, I believe we could see Bitcoin peak just under $200,000, sometime in the next 18 months. That’ll likely be a peak. But I do think we’ll see a rapid jump, and then hopefully, an extended elongated period of it being up before we revisit a bear cycle,” Bradford told Bernstein’s Gautam Chhugani.
Bradford emphasized that Bitcoin’s prolonged period of price stability could indicate a sustained upside in the coming months. “One positive sign is that Bitcoin’s extended flat period shows that sustained upside may last longer as well. Of course, this is all subject to macro events and other factors,” he added.
Bitcoin’s Growth Linked to Halving and Election
Historically, Bitcoin’s price tends to surge following its halving events, which reduces the reward for mining new blocks by half. The next halving is expected in 2024, and Bradford believes this could significantly influence Bitcoin price. “I think we’ll start seeing a meaningful push in Bitcoin prices post-election through January, which should result in significant margin expansion for well-placed miners,” he noted.
Bradford also touched upon the potential impact of the upcoming US presidential election on Bitcoin’s market. He suggested that the resolution of election-related uncertainties could positively affect the cryptocurrency. “It’s less about who wins and more about the election being over, helping to reduce uncertainty,” he said.
Furthermore, he commented on the Federal Reserve’s monetary policy, stating that the central bank might become more aggressive in cutting rates over the next 15 to 16 months. According to Bradford, this could bode well for Bitcoin as investors seek alternative assets amid a shifting economic landscape.
CleanSpark’s Strategic Position in Bitcoin Mining
While some Bitcoin mining companies are diversifying into AI and other sectors, Bradford argued that pure-play Bitcoin miners like CleanSpark are currently undervalued. He pointed out that mining infrastructure investments pay back more quickly than those in AI data centers.
“Pure-play Bitcoin miners have lower capital expenditure costs and faster energization compared to a much longer gestation period for AI data centers,” he explained.
Bradford highlighted CleanSpark’s strategy of acquiring smaller sites ranging from 25MW to 75MW at costs less than $500,000 per MW, significantly cheaper than industry peers. This approach has allowed CleanSpark to scale up to 1GW power contracts across five US states. “Our strength has been in acquiring undervalued assets efficiently, something we believe the market is undervaluing,” he said.
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