Bitcoin Poised for Post-Halving Surge above $150K, Amid Significant ETF Influence
Summary:
As the Bitcoin halving event approaches, Bitcoin continues trading above the $70,000 mark, supporting bullish long-term price forecasts. Bitfinex analysts predict Bitcoin could see its price surge over 160%, reaching a value of over $150,000 post-halving. Despite potential selling pressure due to Bitcoin's historic high before the halving, inflows from US spot Bitcoin Exchange-Traded Funds (ETFs) have significantly contributed to the cryptocurrency’s price rally. To date, Bitcoin ETFs have gathered over 841,900 Bitcoin, valued at $59.2 billion.
As the eagerly-anticipated Bitcoin halving event draws closer - just ten days away - the premier cryptocurrency continues to trade above the $70,000 key psychological milestone, giving credence to bullish long-term price forecasts made by market experts. A research paper by Bitfinex analysts, published by Cointelegraph, suggests that Bitcoin (BTC) could see its value surge by over 160% post-halving, predicting a price peak of over $150,000. The model used for this projection predicts a 160% price increase within the next 14 months, which could push Bitcoin’s value between $150,000 and $169,000. Over the 24 hours preceding 11:50 am UTC, Bitcoin experienced a 2.2% drop to trade at $70,694. Despite this, the pioneer digital currency shows a week-on-week increase of over 7.5% according to CoinMarketCap data. However, the market analysts indicate that the current trading cycle could usher in a greater extent of selling pressure than previously experienced, attributed to Bitcoin's historic high, achieved prior to the upcoming halving; a first in the annals of digital currency. This is due to the fact that 1.87 million bitcoins, or 9.5% of the existing supply, were purchased at a price above the $60,000 mark. During the halving event, Bitcoin prices might experience a drastic downturn due to the Federal Reserve's quantitative tightening policy which is draining liquidity from the markets. Inflows from US spot Bitcoin Exchange-Traded Funds (ETFs) have significantly contributed to the cryptocurrency’s price rally. According to research by CryptoQuant, Bitcoin ETFs represented about 75% of new investment in Bitcoin by the middle of February when the price exceeded $50,000. To date, the Bitcoin ETFs have accumulated over 841,900 BTC, valued at $59.2 billion, which constitutes 4.28% of the circulating Bitcoin supply. Based on the accumulation trend of the past fortnight, Bitcoin ETFs are projected to absorb 2.6% of Bitcoin’s supply annually, according to Dune. Bitcoin ETFs amassed over half a billion in net inflows this past week, with the first trading day of this week witnessing daily net inflows worth $286 million, as per Dune's data.
Published At
4/9/2024 2:57:16 PM
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