bloomberg – bitcoin rise (BTC) is just the beginning of a rally that will take more than $50,000 Next year, thanks to the “halving,” a process that slows down the supply of new tokens, according to cryptocurrency analysts’ forecasts.
The largest digital asset is up 70% since Dec. 31 in a partial revival from an epic defeat in 2022. Although the token is currently hovering around $30,000, the halving could lead to an advance of at least 78%, according to Bloomberg Intelligence and Matrixport.
The halving cuts in half the number of tokens that bitcoin miners receive as a reward for their work. This quadrennial event will be held in April 2024 and is part of the process of limiting the supply of bitcoins to 21 million tokens. The coin broke records after each of the last three halvings.
According to Jamie Douglas Coutts, an analyst at Bloomberg Intelligence, the next halving is expected to be up 50% in previous cycles. Coutts expects Bitcoin to reach $50,000 by April 2024.
“Bitcoin cycles down about 12-18 months before the halving, and the structure of this cycle looks similar to the previous one, although a lot has changed: while the network is much stronger, bitcoin has never experienced a severe and prolonged economic downturn,” he said. .
Bitcoin’s recovery has been slowing down recently due to sluggish expectations of an interest rate cut from the Federal Reserve constant inflation. The tightening of cryptocurrency regulations in the US following the bankruptcy of FTX in November 2022 also threatens to overshadow the market outlook.
FTX fall
“If the FTX crash is indeed the low point of this cycle, history would suggest that there is still about 350 days of ‘accumulation’ before we see the characteristic post-crash breakout price action,” said Jacob Joseph, an analyst. . from CCData.
Markus Thielen, head of research at Matrixport, said in a recent note that bitcoin will fetch about $65,623 by April 2024, more than double the current price.
Bitcoin is still about $41,000 below its all-time high of $69,000 in November 2021, That came 18 months after the halving of 2020. Cryptocurrency markets slumped last year as central banks raised interest rates to curb price pressure and digital asset firms collapsed.
“Bitcoin is likely to reach all-time highs again in the future, but it is unlikely that it will see the same growth as in previous cycles due to increased market size and competition from other digital assets,” says Joseph. CCData.
Read more at Bloomberg.com
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