Bitcoin Set to Skyrocket; Halving Event Contributes to Predicted Jump to Potential $146,000 Peak
Summary:
Analysts predict a bullish market for Bitcoin (BTC), indicating that the anticipated April halving is just one of many factors influencing the surge. The halving will reduce daily BTC production from around 900 to approximately 450. Despite this, analysts believe that the inflow and outflow of fiat in crypto exchanges and Bitcoin ETFs have a stronger impact. Other significant elements include global liquidity measures and HODL wave patterns. Based on historical patterns, Bitcoin is expected to hit around $77,000 by early April and $99,000 by May 2024, potentially peaking at a staggering $146,000 between December 2024 and February 2025.
Analysts across the crypto space believe that the incredible surge Bitcoin (BTC) may witness this year is not only linked to the April halving. After this event, the daily creation rate of BTC will shrink by approximately 450 coins, resulting in a reduced daily average of around 900 BTC, advises investment investigator Lyn Alden. Alden emphasizes, however, that compared to the everyday fluctuation of fiat into and out of cryptocurrency trading platforms and Bitcoin ETFs, this decrease is minimal. Alden suggests it's common for these financial channels to see a 10x higher influx or outflow, underscoring that general interest in Bitcoin often plays a more significant role than ATP supply reduction.
Historically, measures such as global cash flow have shown a stronger correlation with Bitcoin demand than factors like supply reduction, Alden reminds us. She believes that the forthcoming halving, although a noteworthy event, is merely one of many elements shaping both the occurrence and timing of a bull market environment. Other factors include various global liquidity indicators, HODL wave patterns, and other catalysts.
Predictions from Markus Thielen, 10x Research CEO and leading analyst, echo such bullish sentiments. Thielen references a number of quantitative analysis methods to support viewpoints that Bitcoin's recent crossing of multi-year highs on March 13, 2024, signals positive movement. Drawing upon historical price shifts and Bitcoin's recent highs, 10x Research predicts that Bitcoin could be worth around $77,000 by early April and $99,000 by May 2024.
Thielen further notes how Bitcoin's new high of $68,300 triggered a flurry of intraday selling, ushering in significant buying resistance. Previous Bitcoin breakout points in 2013, 2017, and 2020 led to an 189% growth in value after 180 days and then peaking around 9-11 months post-breakout. Drawing from this, Thielen forecasts that Bitcoin may reach a staggering $146,000 between December 2024 and February 2025.
Crypto analyst Simon Peters from eToro underscores the inaugural nature of Bitcoin's current rally, with the virtual currency charting a parabolic rise and hitting record highs prior to the block reward halving. A key instigator behind this attractive performance is the January 11, 2024 release of spot Bitcoin ETFs in the U.S. Peters indicates that such institutional changes may be more significant than previously thought.
Exness's financial market strategist Li Xing envisages macroeconomic changes fuelling this year's Bitcoin price. Apart from the launch of spot Bitcoin ETFs, Li sees the potential for Bitcoin to burgeon as an alternate store of value amid an economic climate of more relaxed monetary policies and lower interest rates.
Once every 210,000 blocks or approximately every four years, Bitcoin halving events are programmed to take place. These halvings have aimed to sustain Bitcoin's scarcity and mitigate inflation since its inception in 2009. Over the course of Bitcoin's lifetime, three halving events in 2012, 2016, and 2020 have reduced miner incentives from an early 50 BTC to today's 6.5 BTC. The impending Bitcoin halving in 2024 will bring this mining reward down to 3.125 BTC. Previous Bitcoin halving events have been followed by massive rally periods. For instance, Bitcoin value soared about 3,000% over 17 months following the 2016 halving, culminating in a record-breaking $20,000 in December 2017.
Published At
3/28/2024 2:00:00 AM
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