The Bitcoin halving that took place on April 20, marking the fourth time this event has occurred, could lead to particularly optimistic price trends for Bitcoin. This prediction is informed by previous market patterns and the introduction of Bitcoin ETFs on regulated exchanges.
Bitcoins record-breaking price of over $73,600 for the first time was reached on March 13, preceding the halving event – a milestone typically occurring 518 to 546 days following prior halvings.
Before reaching its previous record high, Bitcoin experienced strong demand due to institutional investments in US Bitcoin ETFs. According to Sukhveer Sanghera, CEO of Earth Wallet, this situation created the most favorable conditions for Bitcoin’s price growth. (CryptoMoon)
“The combination of nearly all BTC having been mined, early investor via ETFs, increasing demand for inflation hedges, and increased utility — all fundamental aspects of Bitcoin’s value proposition are stronger than ever before.”
Bitcoin’s price declined by 5.6% in the weekly chart, reaching a level above $63,600 as of 9:58 a.m. in UTC. Over the past month, Bitcoin managed to increase by only 2.85%. However, it had surged more than 50% since the beginning of 2024, according to TradingView’s data.
In the future, Bitcoin’s value may rise significantly. However, before each halving event, there have been historical market corrections that occurred in the short term.
According to Temujin Louie, CEO of Wanchain, Bitcoin’s price may signal an end to its current downtrend if it surpasses the $65,000 resistance level. He made this statement in an interview with CryptoMoon.
“Historically, Bitcoin halvings were followed by a slump. Expect to see continued consolidation so long as support around $58,000 holds. If BTC breaks recent highs, look for a rapid increase to $80,000, $90,000, or even $100,000 as investors favor round numbers.”
Bitcoin ETF inflows see temporary slump ahead of the halving
Over the past month, the sluggish increase in Bitcoin prices can be largely explained by a decrease in Bitcoin purchases in the ten US Bitcoin ETFs. In fact, these funds have experienced negative net inflows since the week of Bitcoin’s halving event.
During the Bitcoin halving week, approximately $398 million was withdrawn from U.S.-listed Bitcoin ETFs that track the price of Bitcoin, compared to the net inflow of over $199 million the week before, as reported by Dune.
Although there was a brief drop in performance, the combined total of the ten Bitcoin ETFs held approximately 835,000 Bitcoins, equivalent to around $53.5 billion, representing roughly 4.24% of the entire existing Bitcoin market.
Although there was a recent decrease in Bitcoin ETF investment flows, the overall sentiment towards Bitcoin’s price movement remains optimistic, suggesting that new investors are getting ready to enter the market, as stated by Jonas Simanavicius, the co-founder and CTO at Syntropy.
“Early adopters from large capital institutions have entered the market, and it is taking time for the next wave of institutions to prepare their inflows. While big banks predict some downward movement in BTC post-halving, I see strength in BTC due to potential new money inflows and its positioning as a hedge against inflation.
“According to Simanavicius, the perception of Bitcoin as a shield against political strife is growing stronger due to heightening international disputes, potentially enhancing its role as a secure investment option.”
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2024-04-20 22:56