23 July، 2024

News from Emirates

Middle East Crypto Predictions: Bitcoin to Hit $100,000 by Q1 of 2025?


  Dubai, 14 March 2024-Amidst predictions for Bitcoin to hit the $100,000 mark, the Middle East emerges as an important player on the global crypto scene, in particular, the GCC region, which stands poised to capitalize on recent developments in this sector.

According to Ritu Singh, Regional Director of Stone X Group Inc. The GCC region is primed to emerge as a prominent player in the global crypto landscape, propelled by three pivotal factors: competitive energy rates, crypto-friendly regulations, and access to vital infrastructure components such as rigs, free zones, and governmental support.”

On one hand, abundant and cost-effective energy sources bolster the region’s potential, particularly in nations like the UAE, Oman, and Saudi Arabia. The accessibility of cheaper energy can notably amplify the benefits derived from the Bitcoin halving event. Reduced operational costs elevate the competitiveness of Bitcoin mining operations, augmenting profitability. Already, the UAE boasts a combined Bitcoin mining capacity of approximately 400 megawatts, constituting 4% of the global hash rate.

Singh adds: “Oman emerges as a rising star in the regional crypto mining landscape, exemplified by its endorsement of Exahertz, an Omani mining company. A substantial $1.1 billion investment aims to deploy over 800 megawatts, catalyzing Oman’s presence in the Bitcoin mining sector.”

In addition to competitive energy rates, the maturation of regulatory frameworks in the region sets the stage for the establishment and trading of regional crypto exchange-traded funds (ETFs), mirroring the precedent set by the SEC’s approval in the US.

More specifically, Oman and Abu Dhabi seem to be well positioned to expand in the Bitcoin mining sector from a hardware standpoint as they have recently acquired a stake in Crusoe Energy Systems, a US company using stranded natural gas for crypto mining to reduce gas flaring caused by fossil fuel producers. This partnership aims to deploy power generators and mining equipment to capture gas at well sites, contributing to environmental sustainability and promoting digital currency development.

Striving to diversify their economies, GCC countries were among the first to join the crypto wave, reflecting their strong belief in a new, digital age. Accordingly, they have been heavily investing in developing, expanding, and upgrading their vital infrastructure components such as rigs and free zones, while offering substantial governmental support to the Crypto ecosystem, with increased interest in Bitcoin (BTC).

Despite its volatility, Bitcoin (BTC) remains a highly appealing cryptocurrency in the region. According to Forbes, Bitcoin has jumped from less than $500 in 2013 to more than $64,000 by 2021. It has then dropped below $17,000 in 2022, only to exceed the $69,000 mark this past March 6, 2024. This means that, between January 2014 and January 2024, Bitcoin has witnessed a price increase of approximately 5,150% and an annualized return of more than 135% per year. Over time, Bitcoin seems to be progressing solid, and if the cryptocurrency follows the same price movement as it did during the last decade, it could hit $100,000 in February, 2025.

Although no one knows for sure if the Crypto market will continue its expansion in the coming weeks, months, and years or it will start shrinking, but the fact remains that traders see in such currencies a steppingstone into the future of finance.

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