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HomeCryptoBitcoin Price Forecast: Analyzing the Impact of Halving on BTC.

Bitcoin Price Forecast: Analyzing the Impact of Halving on BTC.

Bitcoin Price

Bitcoin’s value and market dynamics are influenced by the concept of “halving,” which occurs every four years. This event, which halves mining rewards and reduces Bitcoin supply, is crucial for investors. The impact is debated, with the leading cryptocurrency usually rising after the event. Market participants are providing their latest bitcoin price predictions.

Price

Bitcoin’s price has generally risen after halvings, but it’s rare to hit a new all-time high ahead of an event. Last week, it reached a high of over $73,000, but has since pulled back to above $64,000. For the year, Bitcoin has risen over 61%, and in the last 12 months, it has risen over 152%.

Bitcoin Halving: How Will It Impact the Price of BTC?

Bitcoin’s price is expected to rise following a halving event in 2024, potentially causing a significant increase in 2025. Factors such as limited supply, growing institutional interest, and wider acceptance in payment systems could impact the price.
Global recognition through ETF approvals, Gen Z’s participation, and blockchain adoption by authoritative entities could also impact the price. However, the Bitcoin market is volatile and susceptible to global economic conditions. Historical trends show that Bitcoin tends to rally before, during, and after halving events.

Bitcoin’s price recovery to the previous ATH seems to be faster than previous cycles, with a significant correction likely. The introduction of a Spot Bitcoin ETF in the US market is seen as a watershed moment for Bitcoin, similar to the IPO of a major asset. ETFs play a significant role in market dynamics, holding over 4.2% of circulating Bitcoin and absorbing a considerable portion of newly minted coins daily.


As a result, the absorption may intensify post-halving, potentially reducing the available Bitcoin supply for non-ETF investors. If demand remains high, this could theoretically lead to significant price appreciation, but the risk is that Bitcoin could also see significant corrections. The launch of a Spot ETF in the US is seen as a watershed moment for Bitcoin, similar to the eight-year bull run following the launch of gold ETFs.

Outlook

JMP Securities predicts that Bitcoin’s price could reach a high of $280,000 within the next three years due to anticipated Bitcoin ETF inflows. The investment firm estimates around $220 billion of incremental flows into Bitcoin ETFs over the next three years, resulting in an incremental $280K per Bitcoin.

Bernstein is now “more convinced” about its $150K price target for Bitcoin, with estimates of $10Bn inflows for 2024 and another $60Bn for 2025. If demand remains high, this could theoretically lead to significant price appreciation, but the risk is that Bitcoin could also see significant corrections. The ETF approval is just the beginning of a longer process of capital allocation.

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The Nifty and Sensex experienced a sharp decline last week, with the Sensex dropping over 1600 points. Sectoral indices, particularly the Reality and Media indices, saw the most significant losses, with the Nifty losing 2.20 percent and the Sensex losing over 1600 points. The index has formed a bearish candle and is trading below the 20-day Simple Moving Average (SMA), which is largely negative. A weak formation is likely to continue, with the market potentially slipping below the SMA. Bulls should focus on 22150/73000 and 22200/73200 as key resistance areas. A fresh uptrend rally is possible after dismissing the 20-day SMA or 73200, and the Bank Nifty could move up to 47200-47500 above the SMA.

The Nifty and Sensex experienced a sharp decline last week, with the Sensex dropping over 1600 points. Sectoral indices, particularly the Reality and Media indices, saw the most significant losses, with the Nifty losing 2.20 percent and the Sensex losing over 1600 points. The index has formed a bearish candle and is trading below the 20-day Simple Moving Average (SMA), which is largely negative. A weak formation is likely to continue, with the market potentially slipping below the SMA. Bulls should focus on 22150/73000 and 22200/73200 as key resistance areas. A fresh uptrend rally is possible after dismissing the 20-day SMA or 73200, and the Bank Nifty could move up to 47200-47500 above the SMA.

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