Bitcoin Value Expected to Surge Post-Halving Despite Recent Drop, Experts Say
Summary:
Despite a recent 15% drop, expectations are high for a substantial upswing in Bitcoin's value following its upcoming halving event. Whilst the market portrays volatility around the halving, experts see the following 12 months as a potentially profitable period for investors. Some see ETF flows driving the market, while others highlight that post-halving, the costs of mining will double, leading miners to maintain prices for profitability. Despite the decline, analysts remain optimistic about the long-term trends of Bitcoin.
Forecasts suggest a significant upturn in Bitcoin's value is on the horizon, flowing from the halving occurrence, despite the world's most renowned cryptocurrency suffering a nearly 15% fall from its highest peak at $73,738 in the past six days. Charles Edwards, Head of the Capriole Fund, stated in a March 19 report on X that this sort of volatility is standard in the lead up to, and following, the halving of Bitcoin. He further proposed that the year after this process would offer investors the greatest "risk-reward" timeframe. Edwards theorised that the halving, provisionally set between April 18-20, would instigate a closure of underperforming miners. Despite a dip to $61,593 on March 20, Bitcoin's worth stands at $62,690 presently, according to CoinGecko. Edwards doesn't see the price correction coming to an end just yet, but is keeping a positive outlook for the long-term.
CryptoQuant CEO and founder, Ki Young Ju, diverges from Edwards' viewpoint, suggesting that the Bitcoin market is being driven by spot Bitcoin ETF in-flows, rather than the halving. Ju foresaw that post-halving, the costs of mining will double, leading miners to preserve prices for profitability. He stated that the direct cost per coin would rise to $37K, though at the cost of $63K, it wouldn't be a problem. Crypto analyst "Rekt Capital" suggested to his 430,000 followers on X that Bitcoin could have further to fall.
Past data shows that before the 2020 halving, Bitcoin's price fell by about 50% in the months prior but was intensified by the worldwide pandemic in March. The cryptocurrency then spent the rest of the year around $10,000 before experiencing a bull market in 2021. As for 2016, prices went down 33% around halving time before rising at year-end and soaring to a bull market in 2017 which culminated at $20,000. It's worth noting that the 2024 halving is unexplored territory, since previous halvings happened below BTC’s relative peak price and did not have the heavy support from spot Bitcoin ETFs.
Published At
3/20/2024 7:53:28 AM
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