May 29, 2024
Bitcoin Hits $42,867, Forecasts $130,000 Amid Halving and ETFs
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Bitcoin Hits $42,867, Forecasts $130,000 Amid Halving and ETFs

Tuesday, February 6, 2024: The price of Bitcoin is $42,867. Participants in the Bitcoin (BTC) market are deliberating the possibility of the cryptocurrency reaching unprecedented highs after the forthcoming block subsidy halving. The prolonged period of BTC/USD stability within a fixed trading range for more than 150 days has heightened speculation about the halving’s influence on the price. Anticipated to take place around April 18, the halving is expected to cause a 50% reduction in the supply of newly-mined Bitcoin per block, prompting buyers to vie for a diminishing asset.

The launch of new spot Bitcoin exchange-traded funds (ETFs) in the United States is expected to contribute to buyer pressure, creating conditions conducive to an unprecedented supply squeeze. Analysts are formulating various theories about the potential transformation of Bitcoin’s price in 2024, with some predicting substantial gains.

Trader Alan Tardigrade, for instance, envisions a price target of $130,000, nearly double the current all-time highs, before the end of 2024. He points to a cup and handle pattern on the weekly chart, suggesting that if Bitcoin breaks this pattern around the halving date, the target could be $130,000. Tardigrade sees this as the last opportunity for accumulation in the two months leading up to the potential surge.

Several BTC price models, as reported in 2023, converge around the $130,000 mark as a potential upside destination, although their timelines extend into late 2025. Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, projects an even higher price, foreseeing a valuation of over a quarter of a million dollars per coin by 2025. Edwards believes that if Bitcoin’s post-halving returns mirror those of 2020, a $280,000 Bitcoin is conceivable in the coming year.

Edwards subscribes to the common narrative of Bitcoin’s four-year price cycles, suggesting that each successive cycle peak will be less extreme than the last due to the maturation of Bitcoin as an asset, resulting in permanently decreased volatility. Despite arguments that the 2020 cycle’s returns were mediocre, Edwards contends that it was an outlier, and Bitcoin has not yet demonstrated its full potential.

As market participants monitor the unfolding dynamics, the prospect of Bitcoin achieving new highs remains a focal point, with theories and predictions circulating about the cryptocurrency’s trajectory in the coming months and years. The culmination of factors, including the halving, ETF launches, and changing market dynamics, adds to the intrigue surrounding Bitcoin’s future price movements.

Image by fabrikasimf on Freepik

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