- Bitcoin’s limited supply creates the ideal conditions for a $130K target next year.
- Coinciding with key macro trends, anticipated volatility will determine how these factors unfold.
As a seasoned analyst with over two decades of experience in financial markets, I find myself intrigued by Bitcoin’s current trajectory. While the six-figure barrier has been breached, the real test lies ahead as we navigate through the intense FOMO-driven inflows and potential volatility in Q1 next year.
In December, there was widespread doubt, as people predicted a significant decline after the unprecedented expansion in the crypto sector seen in November. Yet, as Bitcoin surpassed the six-digit mark, the conversation is now changing.
Instead of maintaining a positive outlook, it seems we’re about to encounter the genuine psychological challenge now. After surpassing the zone of Fear, Uncertainty, and Doubt (FUD), Bitcoin is set for significant influx driven by the fear of missing out (FOMO).
However, there could be significant fluctuations ahead in Q1 of next year, as economic changes and a newly-elected government pose challenges to the current market’s durability.
Should Bitcoin continue on its current trajectory, its bullish trend might persist up until 2025. Yet, considering the unpredictable nature of cryptocurrencies and their tendency to challenge conventional forecasts, it could be premature to assume an unprecedented surge towards new price levels at this stage.
A pragmatic look at Bitcoin’s past and present
The value of Bitcoin has risen by more than 6% every day recently, reaching an unprecedented peak of $103,900. This surge can be linked to robust demand from buyers in both immediate and continuous trading sectors.
Or perhaps there’s less urge to sell, indicating that investors are holding onto their assets, anticipating further growth and a possible more significant upward trend.
To begin with, this growth was primarily driven by a ’30-day long excitement’ spurred by the so-called Trump-effect, which propelled Bitcoin over the psychological threshold.
As an analyst, I find myself drawn to Bitcoin’s unique selling point: its restricted supply. The fact that it has a cap and is attracting significant attention from prominent investors suggests immense potential. Yet, it’s crucial to acknowledge that the path towards realizing this potential may not always be straightforward.
Source : IntoTheBlock
The graph you see demonstrates the earnings after every Bitcoin halving event, showing an apparent pattern of decreasing profits as time progresses.
As each cycle progresses, it requires more capital to generate the same level of market movement.
After the Bitcoin halving that took place in 2012, its value soared an incredible 7,900% during the year 2013. In a similar manner, after the 2020 halving event, Bitcoin’s price increased by approximately 594% within the year 2021.
Although this yield remains quite substantial, it’s noticeably less than the growth experienced during the last two phases, hinting that the market could be reaching its maturity point.
Consequently, it now takes more capital to push Bitcoin’s price up by the same percentage.
Consequently, although some members within the cryptocurrency sphere envision Bitcoin might climb to $1 million per token, it is wiser to anticipate a potential increase of 100% to 200% from its value following the halving.
This would place Bitcoin’s peak in the next cycle between $130,000 and $190,000.
A pragmatic look at BTC’s future
Absolutely, it appears that a blend of smaller market movements (or micro trends) is propelling Bitcoin towards its upcoming high, estimated to be around $130K. This upward trajectory is primarily being pushed by panic buying from investors, increasing institutional interest, and the common trend seen after each halving event.
Yet, it’s crucial not to disregard wider market patterns. A significant level of market turbulence might arise when the newly elected government assumes office the following year.
There’s a strong expectation that the incoming President Trump may take action to support cryptocurrencies in various ways. For instance, he might consider setting up a national Bitcoin reserve as part of a strategic plan, abolishing taxes associated with crypto transactions, and increasing the number of Initial Public Offerings (IPOs) for cryptocurrencies to develop the public equity markets in this sector.
In essence, the fate of these undertakings largely hinges on how well they are carried out. The execution will significantly influence Bitcoin’s future trajectory. As an analyst, I am closely monitoring this development to gauge its potential impact on the digital currency market.
Read Bitcoin’s [BTC] Price Prediction 2024-25
As a researcher, I anticipate that upcoming regulatory frameworks may align with the post-halving surge expected for next year, thereby possibly establishing a strong connection or correlation between these two events.
In other words, if the relationship between factors stays compatible instead of opposing, a goal of $130K can be reached.
Read More
- HBAR PREDICTION. HBAR cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
- ZIG PREDICTION. ZIG cryptocurrency
- 15 Games Everyone Wants Sequels For
- LDO PREDICTION. LDO cryptocurrency
- EUR AED PREDICTION
- STEEM PREDICTION. STEEM cryptocurrency
- POL PREDICTION. POL cryptocurrency
- BDX PREDICTION. BDX cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
2024-12-05 23:04