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In October 2024, Bitcoin showed a robust increase in its market price, opening at around $63,000 and seeing various upward movements, peaking near $74,000 by mid-month. By the end of October, the price adjusted to close at approximately $71,961, marking a significant rise from the opening figure. This increase was influenced by anticipation of a major economic stimulus from China, enhancing market liquidity and Bitcoin's appeal. Additionally, the U.S. Federal Reserve's indication of a slower pace in interest rate cuts further supported Bitcoin's attractiveness as an investment. The month also saw a rise in institutional interest, notably with substantial inflows into Bitcoin ETFs like those offered by BlackRock, reflecting increased accessibility and investor confidence in Bitcoin.
“Q4 2024 signals a shift toward hyper-Bitcoinization as Bitcoin gains momentum with institutions and at the nation-state level. With the U.S. election spotlighting it and BRICS eyeing Bitcoin for global trade, its role in reshaping finance is undeniable.”
- Simon Penwright CTO
Pantheon Mining has finalised the list for the UAE mining farm and secured deals on new mining equipment. We’re also exploring additional locations near Dubai to expand our operations.
In Qatar, we’re moving forward with plans to establish Bitcoin mining sites, focusing on securing infrastructure and handling regulatory requirements.
Additionally, we hosted a successful dinner during BTC Amsterdam, bringing together partners and potential clients to strengthen relationships and discuss future collaboration.
In October, Bitcoin's price experienced a consistent upward trajectory. The digital currency opened the month around $63,000 and encountered moderate fluctuations before beginning a notable ascent mid-month. By the third week, Bitcoin prices had surged, surpassing the $70,000 mark and achieving a peak near $74,000. Towards the month's end, the price slightly corrected but remained strong, closing at approximately $71,961. This reflects a substantial increase from the beginning of the month.
In October 2024, Bitcoin's price was influenced by several key factors. The anticipation of a large economic stimulus from China played a significant role, increasing market liquidity and enhancing the attractiveness of Bitcoin. The U.S. Federal Reserve signaled a slower pace of interest rate cuts, which traditionally benefits non-yielding assets like Bitcoin by reducing the opportunity cost of holding them.
Institutional interest in Bitcoin also markedly increased, highlighted by record inflows into BlackRock's Bitcoin ETF. This trend was supported by the launch of several spot Bitcoin ETFs, making Bitcoin more accessible to retail and institutional investors.
Additionally, heightened concerns about the U.S. debt levels, particularly highlighted by Elon Musk's comments about a financial emergency, drove interest in Bitcoin as a haven asset. (source: Forbes)
In addition, digital asset strategist Benjamin Cowen highlighted several factors contributing to Bitcoin's price rise in October 2024. He points out that Bitcoin typically experiences a rally in the fourth quarter of a halving year, which aligns with historical patterns favouring price increases due to reduced supply and heightened investor interest. (Source: DailyHodl)
The Crypto Fear and Greed Index has transitioned from "Neutral" to "Extreme Greed," indicating a significant increase in investor enthusiasm. The index has escalated from last month's neutral score of 50 to a high of 77 today. Last week, the index was at 69, reflecting a state of "Greed," yesterday's value remained steady at 77, showcasing persistent and strengthening bullish sentiment.
In October 2024, the Bitcoin hashrate displayed considerable variability. Starting the month at around 700 EH/s, the hashrate fluctuated notably, dropping to approximately 600 EH/s in early October. In the mid-month, a significant spike was observed, reaching highs near 850 EH/s, indicative of intense mining activity. However, this peak was followed by a rapid decline to around 700 EH/s. As the month progressed, the hashrate climbed again, peaking at around 800 EH/s before settling near 750 EH/s by the end of October. The pattern suggests active adjustments in mining power throughout the month.
In October 2024, Bitcoin miners' revenue demonstrated notable fluctuations, beginning the month at $31,329,411. The revenue increased to $34,187,225 by the 4th of October, followed by a decline to $25,530,107 on the 9th. The middle of the month saw a gradual recovery, with revenues reaching $30,990,840 on the 12th and peaking at $38,837,709 by the 19th. A subsequent decrease occurred, with revenues dropping to $30,775,801 on the 22nd, but they rebounded towards the end of the month, culminating in $38,851,883 on the 30th. This pattern reflects dynamic changes in mining profitability, correlating with moves in the hashrate and Bitcoin's market price.
In August, the average prices in the Bitcoin mining industry (according to ASIC Miner Value) were:
Bitmain Antminer S19j Pro+ (122TH/s)= $1,796.56
Bitmain Antminer S19 XP Hyd (255TH/s)= $6,087.17
MicroBT Whatsminer M50S (126Th/s) = $1,965.56
At Pantheon, we are proud that due to our scale and trusted partnerships, we can offer miners such as the Bitmain Antminer S21 Hydro (335T - 5360W) for $11,864 * including capex, + 1st and last two months electricity, in our fully managed data centres. This capex contribution enables us to offer electricity at a competitive rate of 4¢.
*Minimum order quantities apply.
The contents of this analysis are for informational purposes only and do not constitute investment advice. The study is based on the author's opinions and assumptions and may not reflect the actual state of the market or the future outcomes of any investment. The author is not a financial advisor and assumes no responsibility for the information's accuracy, completeness, or suitability.
Bitcoin investments are subject to high risks and volatility. The prices can fluctuate significantly due to factors such as supply and demand, regulatory actions, technological innovations, security breaches, hacking attacks, market sentiment, and global events.
Investors should be aware of these risks and conduct their diligence before making investment decisions.
