Bitcoin Market Anticipates Record Highs Following Subsidy Halving; ETF Launch Adds to Fervor
Summary:
Expectations are high in the Bitcoin market for the cryptocurrency to hit new record levels following its block subsidy halving. As the supply of newly-mined bitcoins will drop by 50% per block around April 18, market participants predict a price revolution in 2024, with some speculating a peak of $130,000 by the end of this year. Others envision a value of over a quarter million dollars per coin by 2025. Meanwhile, the launch of new spot Bitcoin exchange-traded funds (ETFs) in the US is anticipated to ratchet up demand, potentially triggering a pronounced supply squeeze.
Participants in the Bitcoin (BTC) market are increasingly optimistic about the cryptocurrency hitting new record highs following its block subsidy halving. As BTC/USD continues to hold strong in a well-defined trading range for more than five months, expectations about the halving's effect on its price are on the rise. The available quantity of newly produced bitcoins is set to decline by 50% per block around April 18, resulting in intensified competition among buyers for a rapidly diminishing resource. This, coupled with the expected surge in buyer demand due to the recent launch of spot Bitcoin exchange-traded funds (ETFs) in the United States, may set the scene for an unprecedented supply squeeze. This forms the primary hypothesis of a 2024 Bitcoin price revolution, one that could surpass all previous highs.
Trader Alan Tardigrade predicts that Bitcoin will reach $130,000 - almost twice the current record high - before the year end. On Feb. 6, he posted a chart on X (formerly Twitter), pointing out a potential "cup and handle" pattern on the weekly chart. According to him, Bitcoin breaking this "Cup with Handle Pattern" around the halving date would result in a value of $130k, suggesting the upcoming two months as an exciting time frame for Bitcoin accumulation before it skyrockets to over a hundred thousand.
Charles Edwards, founder of Capriole Investments, a quantitative Bitcoin and digital asset fund, envisions a peak of over a quarter of a million dollars per coin in 2025 if Bitcoin maintains its post-Halving growth similar to that of 2020. Edwards also mentions Bitcoin’s repeating four-year price cycles, emphasizing that each successive peak would be less dramatic due to the maturing of Bitcoin as an asset and continual reduction in volatility.
And for those anxious for immediate price jumps, the popular investor Fred Krueger anticipates a major increase in a much shorter time frame. He argues “the case for ATH within the next 30 to 60 days,” attributing this to ETF activity, as newly introduced U.S. spot products continue to draw in more and more capital.
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Published At
2/6/2024 1:25:00 PM
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