According to cryptocurrency analysts' predictions, due to the "halving" mechanism limiting the supply of new tokens, the rebound in Bitcoin is only the beginning of a new round of upward trend, which will exceed $50000 next year.This largest digital asset has risen 67% since December 31st, partially recovering from the astonishing decline in 2022
According to cryptocurrency analysts' predictions, due to the "halving" mechanism limiting the supply of new tokens, the rebound in Bitcoin is only the beginning of a new round of upward trend, which will exceed $50000 next year.
This largest digital asset has risen 67% since December 31st, partially recovering from the astonishing decline in 2022. Although the price of Bitcoin is currently hovering around $30000, industry research and Matrixport predict that halving could trigger at least an 81% increase.
Halving is about to halve the Bitcoin mining reward, which is part of the mechanism to limit the total supply of Bitcoin to 21 million pieces, approximately every four years, and the next time around April 2024. After halving three times in the past, Bitcoin has hit new highs every time.
Industry research analyst Jamie Douglas Coutts stated that based on previous cycles, approximately 50% of the upcoming halving is currently reflected in market quotes. Coutts predicts that Bitcoin may reach $50000 by April 2024.
The bottom of Bitcoin's cycle is around 12 to 18 months before halving, and this cycle structure looks similar to the past, although many things have changed - although the network is very powerful, Bitcoin has never experienced a long-term severe economic contraction, "he said.
Constrained by the expected cooling of the Federal Reserve's interest rate hike under sustained inflation, Bitcoin's rebound has recently shown a decline. The rectification actions taken by US regulatory agencies on cryptocurrencies after the collapse of the FTX exchange in November 2022 may also cast a shadow on the market outlook.
If the collapse of FTX is indeed the bottom of this cycle, then based on historical experience, after about 350 days of 'accumulation', we will witness a unique price breakthrough after halving, "said Jacob Joseph, an analyst at CCData.
Markus Thielen, the research director of Matrixport, recently reported that Bitcoin will reach around $65623 by April 2024, which is more than twice the current price.
After 18 months of halving in 2020, Bitcoin hit a historic high of nearly $690 million in November 2021, and is still approximately $41000 below its current level. With the central bank raising interest rates to curb price pressures and the collapse of digital asset companies, the cryptocurrency market plummeted last year.
Bitcoin may once again hit a historic high in the future, but due to the expansion of market size and competition from other digital assets, there is little likelihood of growth like in previous cycles, "said Joseph of CCData.
Bitcoin, which fell more than 9% last week, rose 1.4% to $27881 at 09:04 Singapore time on Monday.
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