Bitcoin Bull Cycle Continues Despite Dip, as Halving Event and New Forecasts Promise a Bright Future
Summary:
Bitcoin's 13% dip from its record high in the last two days has been attributed to a saturated market. However, CryptoQuant's study indicates the bull cycle still continues, as new investors and valuation metrics fall below levels from previous peak periods. The upcoming Bitcoin halving event, scheduled to take place in less than a month and expected to drive up Bitcoin prices, as well as predictions from Standard Chartered Bank that foretell a surge of Bitcoin to $150,000 in 2024, suggest a robust future for the cryptocurrency.
In the last two days, Bitcoin (BTC) has experienced a 13% decrease from its latest record high of $73,835, briefly dipping near $60,000. Analysts attribute this drop to a saturated market, in a phenomenon known as a "pre-halving retrace", just a month before the much-anticipated Bitcoin halving event.
However, according to a study by CryptoQuant, despite the tumble, the Bitcoin bull cycle hasn't run its course. This assertion is based on the fairly low influx of investments from new players and valuation metrics that remain below the thresholds observed in previous market peaks. CryptoQuant's weekly cryptocurrency report reveals that nearly half of current Bitcoin investments come from short-term investors. CryptoQuant analysts emphasize that typical bull cycles end when new investors contribute 84%-92% of investments, implying that the current bull run is far from over based on the present engagement from new investors.
The CryptoQuant study also indicates that the current valuation parameters have not yet reached levels that align with past market zeniths.
CryptoQuant's Profit and Loss Index, consisting of three on-chain markers highlighting Bitcoin's profitability, points towards a potential bull cycle in 2024. Nonetheless, current levels are somewhat lower than those recorded during peak market periods in the 2013, 2017 and 2021 bull markets.
The imminent Bitcoin halving event, which is less than 31 days away according to CoinMarketCap’s countdown, is another significant factor that could further drive up Bitcoin price and trigger a strong uptrend.
Looking ahead, the fourth halving anticipated to take place on April 20, will see Bitcoin miner block rewards cut in half from 6.25 BTC to 3.125 BTC. Historically, Bitcoin’s supply reduction has typically resulted in a price increase for BTC, invariably leading to a marked bull run.
Standard Chartered Bank has also raised its price forecast for BTC from $100,000 to $150,000 in 2024, despite just a few months into the year, based on the surprising price hikes observed so far. Moreover, the bank anticipates that Bitcoin will hit the peak of the cycle at $250,000 in 2025, before stabilizing at a robust $200,000.
While these predictions don't solely hinge on the halving event, they do consider the strong performance of Bitcoin ETFs since they started trading in January and the fresh dynamics they bring to the market this halving cycle.
Disclaimer: This news piece does not offer any financial advice or recommendations. Investments and trading involve risks. Individuals should carefully research before making any financial decisions.
Published At
3/21/2024 5:46:02 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.