Bitcoin Expected to Soar Despite Recent Dip, Decoupling Predicted Post Halving Event
Summary:
Despite a recent fall in its price, Bitcoin is expected to experience a substantial rise leading up to its halving event, with some industry figures predicting it could reach $100,000. This optimism is fueled by various factors including high ETF-related demand and robust support from institutional investors. However, some experts predict a possible short-term dip post-halving, reflecting previous price cycles, but maintain an overall bullish market sentiment. Long-term, Bitcoin is expected to decouple from other cryptocurrencies due to vast daily inflows.
Even with the Bitcoin (BTC) halving event just around the corner, BTC's price has had a bit of a rollback, despite seeing an all-time high earlier this month fueled by an influx of new investments. Yet, according to industry insiders, this temporary decline is not a cause for worry. Bitcoin, in fact, has had a significant surge in its price in 2024, starting the year at $42,208 and peaking at an all-time high of $73,737 on March 14. The retrace from this high is currently ongoing, as the countdown to the halving event reaches its 30-day mark.
Samson Mow, a long-time bullish proponent for Bitcoin's price rise, remains convinced that Bitcoin will soon overcome its current all-time high. As the CEO of Jan3, a tech firm dedicated to expanding global Bitcoin accessibility, Mow conveyed to Cointelegraph his belief that Bitcoin's price will experience a growth spurt before the halving, expecting it to touch $100,000. He cites the immense demand from exchange-traded funds (ETFs), which consume about 7,000 Bitcoins daily, as a significant factor driving the price surge.
However, despite Mow's predictions of a sharp price increase in the next month, some believe a further price dip might be on the horizon. Ran Neuner, during a recent dialogue on X, emphasized to his followers that a 20-30% price fall "is normal and healthy," particularly in a bull market and a month ahead of the Bitcoin halving. He suggested that prices could easily hit a temporary low of $55k-$60k, presenting a lucrative buying opportunity.
Adding to this dialogue, Danny Chong, co-founder of decentralized asset tracker Tranchess, speculated that the trend of Bitcoin's price after the halving might see a temporary dip rather than a continuous growth. This, however, would not chip away at the overall bullish market sentiment, which is significantly influenced by the ongoing development within ETFs, a key catalyst for maintaining a positive outlook on the market.
Tracing past halving cycles, Chong noted the cyclical price behaviour around halving events: a substantial uptick leading up to the halving, followed by minor corrections and consolidation period before the colossal bull run. He believes this "oversimplified" analysis still holds value, but regardless of predictions regarding a potential dip, there is a widespread industry consensus that the long-term trajectory of Bitcoin would be upward.
Danny Lim, a central contributor to the decentralized exchange MarginX, echoed his belief that the upcoming halving event would likely receive strong support due to the participation of institutional investors, driving demand against the limited supply. This would provide much-needed support during potential retractions.
Zac Cheah, the co-founder and CEO of blockchain-oriented point-of-sale solution provider Pundi X, views the imminent halving event as unique due to the current market conditions. He foresees robust support for Bitcoin's floor price in response to the increased demand from institutional investors, driven by significant players like MicroStrategy and BlackRock, pushing each other to establish themselves as top Bitcoin holders. This competition promotes bullish sentiments and boosts transaction activities, yielding increased profits for Bitcoin miners.
With added considerations like the potential interest rate cuts by the US Federal Reserve, Bitcoin is touted to thrive exceptionally in the upcoming halving cycle. Cheah, aligning with Mow's prediction, also estimates Bitcoin's price to soar to $100,000.
When asked by Cointelegraph whether other cryptocurrencies would get carried along by Bitcoin's price surge or if Bitcoin would eventually segregate from the rest of the market, Mow answered that the massive tailwind from ETFs would likely lead to a decoupling. The inflow of $500 million to $1 billion each trading day mostly focuses on Bitcoin, making it unlikely for other, smaller cryptocurrencies to compete long-term, ultimately losing momentum and falling behind.
Published At
3/20/2024 4:23:22 PM
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