- Adam Back, co-founder/CEO of Blockstream, said the prices of ASIC miners and Bitcoin often correlate.
- The CEO noted that ASIC miners’ prices peaked in the 2021 bull market, the same time as BTC.
- The miners currently sell for under $15, but Back predicted the prices would rise as BTC value grows.
Adam Back, co-founder and CEO of blockchain company Blockstream, in a recent analysis, said the price of Bitcoin and Bitcoin mining equipment often follow the same trajectory. Back pointed to historical data to back up his claims.
Indeed, the CEO in the post said ASIC miners and Bitcoin prices often correlate. He noted that before the 2021 Bitcoin bull market started, ASIC miners’ prices were charting low as there was a shortage of miners at that period.
Back said, at this time, people were optimistic about the future price trajectory of Bitcoin. Thus, when the rally started, the prices of the miners also took off, falling and rising as the digital asset charted through that bull market.
At the same time, Bitcoin set a new all-time-high, Back stated that ASIC miners also hit their peak price of $120/Terrahash. However, he continued by saying that demand for the machines has since dropped following the drop in BTC value.
At present, the CEO said the machines that traded hands for as high as $120 in 2021 are priced under $15/TH. He also said the price of the machines has stayed down despite Bitcoin gaining momentum this year and wiping off previous losses.
However, Back expressed his belief in the ASIC miners rising again, which he predicted would happen as Bitcoin moves deep into bull territory. He noted that the Halving scheduled to happen next year may be a catalyst for a surge in BTC price.
According to the co-founder, Bitcoin prices often go up six months before the Halving. But whether that would be the case this time around, he said he can’t fully predict yet. Meanwhile, the CEO had an optimistic prediction for Bitcoin recently. Back predicted that the token may rise as high as $100K on the back of institutional adoption.
Elsewhere, CoinMarketCap data shows Bitcoin continues to sustain its $34K level, following a slowdown since the start of the week. Over the past 24 hours, BTC has declined marginally to sit at $34,196 at the time of press.
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