April 19, 2024
Beyond the Halving: Why Analysts are Bullish on Bitcoin in 2024
Bitcoin Halving

Beyond the Halving: Why Analysts are Bullish on Bitcoin in 2024

As the Bitcoin halving looms in April, analysts are eyeing a broader landscape for the cryptocurrency’s potential surge in value this year. While the halving event is expected to reduce daily BTC production by half, experts emphasize that macroeconomic factors and overall demand will play significant roles in driving Bitcoin’s price to new heights.

Demand outweighs supply cut

Investment researcher Lyn Alden underscores that while the halving will diminish the daily supply of BTC, the impact pales in comparison to the massive inflows and outflows in fiat currencies on crypto exchanges and Bitcoin ETFs. Alden emphasizes that the overall demand for Bitcoin is a far more substantial factor in influencing its price trajectory.

Global liquidity and HODL waves

Alden points to historical data indicating that Bitcoin’s demand is closely correlated with global liquidity measures, such as the global broad money supply (M2). This correlation suggests that factors beyond the halving, such as global economic conditions and HODL waves, will significantly influence Bitcoin’s bullish trajectory.

Source: Look into Bitcoin

Projected price targets

Markus Thielen, CEO and head analyst at 10x Research, predicts a bullish outlook for Bitcoin, citing similarities with previous bull markets. Using quantitative analysis, Thielen forecasts Bitcoin reaching $77,000 by early April and $99,000 by May 2024. He anticipates further growth to $146,000 by early 2025, despite potential corrections along the way.

 Source: 10x Research

Institutional demand and ETF impact

eToro crypto analyst Simon Peters highlights the role of institutional demand, particularly fueled by the introduction of spot Bitcoin ETFs in the United States. Peters notes that this institutional interest, combined with ongoing accumulation by entities like MicroStrategy and Bitcoin whales, has driven demand exceeding new supply—a trend not seen in previous cycles.

Macroeconomic factors at play

Li Xing, financial market strategist at Exness, underscores macroeconomic developments as key drivers for Bitcoin’s price in 2024. Factors such as expectations of a softer monetary policy, lower interest rates, and geopolitical uncertainties could further elevate Bitcoin’s appeal as an alternative store of value.

Halving’s historical impact

The Bitcoin halving, programmed to occur every four years, has historically been associated with post-halving rallies. With the upcoming halving in 2024, which will further decrease the mining reward, analysts anticipate a continuation of this trend, bolstered by broader market dynamics and demand-supply imbalances.

Conclusion 

While the Bitcoin halving garners attention for its supply-side impact, analysts emphasize that broader macroeconomic trends and institutional demand will likely drive Bitcoin’s bullish trajectory in 2024 and beyond.

Image by freepik

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