Institutional Demand and Halving Cycle Predict Record High for Bitcoin in 2024
Summary:
Bitcoin's history of strong growth during its supply-halving event along with increasing demand from institutional investors point towards a new all-time high in 2024. Historically, Bitcoin price surges have followed halving events with significant price hikes post-halving. Experts estimate a rise in Bitcoin's price prior to the next halving to levels between $70,000 and $80,000. The halving event is also anticipated to stimulate interest in the crypto space and attract new investors. However, readers are advised to conduct proper research as all investments involve risk.
The anticipated soaring demand from institutional investors for spot Bitcoin ETFs, coupled with Bitcoin's historical trend of significant growth during its supply-cut event, are believed to indicate a new zenith in Bitcoin values by 2024. This assumption is build upon Bitcoin's halving cycles, which are typically followed by bullish market moves, as Bitcoin charts an upward trajectory, reaching its peak several months post-halving. Every four years, halvings occur, slashing miner rewards by half. The impending halving, due within 3 days, will decrease these rewards from 6.25 BTC to 3.125 BTC. Source: CoinMarketCap
Previous Bitcoin halvings have influenced Bitcoin prices significantly. The expectation of diminishing supply and increased demand have cumulatively caused Bitcoin price to surge and foster positive market sentiment in the past. In all the three Bitcoin halvings till date, market trends consistently show that Bitcoin price was lower a month prior to each halving event, and then spiked at the time of halving. Source: Cointelegraph
For instance, during the first halving on November 28, 2012, Bitcoin price was around $12, and then skyrocketed to $1,242 a year later, which marks a growth of more than 10,000%. Later, the second halving in July 9, 2016, pushed Bitcoin's price to its former record-high of approximately $19,785 by December 2017. Then, at the third halving on May 11, 2020, Bitcoin's price stood at $8,730, only to surge to its record-high close to $69,000 by November 2021.
Bitcoin's inherent scarcity, which is underscored by the reduced supply issuance rate, coupled with sustained or increased demand, can potentially push its price up. Concurrently, halving events also generate interest in the crypto space, attracting new investors, and hence, cause a rise in trading activity. Source: Rekt Capital
However, certain crypto analysts caution that historical price movements may not necessarily reflect future trends, but the prospect of a bullish market can stimulate investors to enhance capital inflow into Bitcoin.
Crypto exchange Bitfinex predicts Bitcoin might reach the much-anticipated $100,000 mark after eclipsing its 2021 record-high prior to halving. The exchange forecasts a conservative price range of $100,000-$120,000 by Q4 2024, likely to peak some time in 2025.
However, unlike previous years where Bitcoin broke record-highs months after the halving, the trend seems to deviate this year, as Bitcoin exceeded its former all-time high on March 5 and set a new record at $73,835 on March 15. Crypto analyst, Peter Brandt, predicts Bitcoin might hit $150,000 by Q4/2025 based on this trend. Source: Peter Brandt
Analyst PlanB suggests that the bullish market could bring "face-melting FOMO" involving extreme price surges coupled with multiple 30% dips for approximately 10 months. Market analysts from Deribit and GenesisVol predict a 20.8% rise in Bitcoin's price prior to halving to levels between $70,000 and $80,000.
Bitcoin mining experts share this positive outlook, anticipating short-term volatility owing to supply shock and decreased inflation rate post-halving. Andy Fajar Handika, CEO of decentralized Bitcoin mining pool Loka Mining expects enhanced scarcity narratives due to Bitcoin ETFs and the success of meta-protocols like Ordinals.
However, this article does not provide investment advice or recommendations. All investments and trading activities involve risk and thus, readers are encouraged to perform their own research before making any decisions.
Published At
3/20/2024 5:58:41 PM
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