In just ten more days, the highly anticipated Bitcoin halving event approaches. Currently, Bitcoin’s price hovers around $70,000, a level that strengthens optimistic forecasts for its long-term growth from industry experts.
After undergoing a halving event, the cost of Bitcoin (BTC) may surge by more than 160% and peak at over $150,000, as suggested in a study released by Bitfinex researchers and obtained by CryptoMoon.
“Using a straightforward regression model, we predict a 160% post-halving price surge in the next 14 months, taking the price to between $150,000 – $169,000.”
Bitcoin experienced a 2.2% decrease in value between 11:50 am UTC onward from the previous day, now costing around $70,694. However, Bitcoin has shown an impressive rise of over 7.5% over the past week as per CoinMarketCap’s latest figures.
Instead of the analysts’ observation: The analysts point out that Bitcoin’s reaching a new peak price prior to the halving event, which is a first in cryptocurrency history, has led to greater selling pressure among investors compared to past cycles.
Confident Bitcoin investors may view this as a positive development, but it could also lead to increased selling due to the large purchase of 1.87 million BTC, representing 9.5% of the current supply, at a price above $60,000. Analysts pointed out:
“This underscores the active engagement of Short-Term Holders at higher prices, reflecting evolving ownership dynamics amidst market activity and institutional influence through spot ETFs. Increased entity movement suggests a shift in the cycle towards the gradual distribution of dormant supply and profit-taking.”
Yet, the cost of Bitcoin could experience a significant drop during the halving phase as a result of the Federal Reserve’s quantitative tightening action, which involves taking liquidity out of financial markets. (Arthur Hayes, the co-founder of BitMEX, expressed this idea in his April 8 blog post)
“That is why I believe Bitcoin and crypto prices in general will slump around the halving […] It will add propellant to a raging firesale of crypto assets.”
Bitcoin ETFs amass 4.28% of circulating BTC supply
Bitcoin’s price surge can be attributed in part to the large influxes of money coming into Bitcoin from US Bitcoin ETFs.
According to CryptoQuant’s findings, Bitcoin ETFs were responsible for approximately 75% of the new investments in Bitcoin by February 15, as its value broke through the $50,000 threshold.
After being introduced, Bitcoin ETFs have accumulated approximately 841,900 Bitcoins, equivalent to around $59.2 billion, accounting for roughly 4.28% of the total Bitcoin circulation.
Based on the trend of the past fortnight, Bitcoin ETFs are projected to purchase approximately 2.6% of the total Bitcoin supply annually, as estimated by Dune.
Last week, Bitcoin ETFs attracted over $500 million in new investments, and the largest inflow of $286 million occurred on April 8, which was the first trading day of the week, based on data from Dune.
Read More
- SQR PREDICTION. SQR cryptocurrency
- DOGS PREDICTION. DOGS cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- DOP PREDICTION. DOP cryptocurrency
- KNINE PREDICTION. KNINE cryptocurrency
- CLOUD PREDICTION. CLOUD cryptocurrency
- TON PREDICTION. TON cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- HI PREDICTION. HI cryptocurrency
- METIS PREDICTION. METIS cryptocurrency
2024-04-09 15:11