F&G: 83 (Extreme Greed)
Price: $88 – 92k (or) £69-73k
Hashrate: 733 EH/s
Reachable Nodes: 19,332 (Average 18,092)
I’ve started to include the reachable nodes figure in these updates and I will be writing about the role that nodes play in the future.
As you can see from the chart above, the hashrate has begun to climb again. This is a positive move as it means that the network is stronger. More miners means more energy competing for the btc block reward. This ties in with the argument that says the price of bitcoin follows the hashrate. I will be exploring this in more detail later on. For now, it is just worth noting that the hashrate is on the rise again. If it continues upwards, price tends to follow.
Note: This chart was taken earlier on today. It has now risen from 730 to 733 EH/s
But putting the hashrate aside for a moment, MicroStrategy has just bought another 51,780 btc for around $4.6 billion. Their total now sits at 331,200 btc worth $30 billion. I suspect, and this is only my opinion, that they are trying to get as much as they can before other companies get on board.
For instance, as of September 30, 2024, Microsoft held approximately $78.43 billion in cash and short-term investments. Half of this invested into btc could put them ahead of MSTR. Whether they do or not, however, is a different question.
This tweet from Sam Callahan best sums up the news of today. But it would also appear that companies are now front running nation states when it comes to bitcoin. This is important to note, because it is worth remembering that nation states operate at the very highest level.
So what happens from here? Honestly, I do not know. Big companies are hoovering up large amounts of bitcoin. The last halving was in April of this year which put us at 3.125 BTC per block. That’s about 450 BTC a day. In 3.5 years, when the next halving comes, that will be reduced to around 225 BTC a day.
As I said in an earlier post:
The fundamental law of supply and demand is going to make itself felt.
For example, if btc hits 250k this cycle – and that is fairly conservative – then when the next halving comes we should definitely expect to see double that at 500k the next cycle. And the cycle after that, when we’re at 112.5 btc a day?
Bitcoin priced in the millions is not only possible.
It is inevitable.
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