According to analysts, Bitcoin has risen 67% this year, and this is likely to be just the beginning of a new round of market trends. As the halving of mining rewards approaches, the currency price will continue to rise. We are optimistic about Bitcoin. Breaking through $50,000 next year.
Bitcoin failed to hold the $30,000 mark last week and was still hovering around $27,500 at press time. However, analysts from the research agency Bloomberg Intelligence and the cryptocurrency financial services platform Matrixport both believe that driven by the "halving theme", Bitcoin's upside potential is considerable and is expected to be as high as 81%.
In order to curb currency price inflation, the block reward of the Bitcoin network will be "halved" approximately every four years, and the next halving is expected to occur in April 2024. By then, the output of Bitcoin will be reduced. The reward dropped from 6.25 Bitcoins to 3.125 Bitcoins.
Bitcoin has experienced three mining reward halvings in November 2012, July 2016, and May 2020, and all three halvings represent the beginning of the next round of bull market. However, whether the halving of rewards will bring about an upward trend in prices, and how strong the upward trend will be, is still a matter of divergent opinions.
Bloomberg Intelligence analyst Jamie Douglas Coutts said that based on the pattern of past market cycles, the upcoming Bitcoin halving should be priced in at about 50% by now. He predicted that Bitcoin could reach $50,000 by April next year, stating:
Bitcoin typically bottoms out around 12 to 18 months before a halving, and while a lot has changed, the overall structure of this market cycle is very similar to the past.
As inflation remains high, dampening market expectations for an interest rate cut this year, Bitcoin's upward trend has encountered a lot of resistance. In addition, since the collapse of cryptocurrency exchange FTX, U.S. regulatory agencies have continued to pursue the cryptocurrency industry, which has also made the market outlook even more gloomy.
CCData analyst Jacob Joseph said:
If the market crash caused by the FTX bankruptcy is indeed the bottom of this cycle, then according to historical experience, before the halving market is officially ignited, we still have about 350 days of window period to "take advantage of the low price", which is exactly what "hoarding" means. "Coin" is a good time.
Markus Thielen, director of research at Matrixport, said in a recent report that Bitcoin will reach around $65,623 by April 2024 — more than double the current price.
“Bitcoin may reach new all-time highs again in the future, but it is unlikely to see the same gains as in previous bull cycles due to increased market size and competition from other cryptocurrencies,” CCData’s Joseph said.
Bitcoin edged up less than 0.5% to $27,750 as of 12:30 p.m. Monday, a weekly loss of more than 8%.
Recommended reading: Will the “halving market” start? Analyst: Bitcoin has “big room to rise” this year
This article is optimistic about Bitcoin’s “halving market”! Analyst: It is expected to hit US$50,000 next year. The post appeared first on Blockchain.
