Anticipated Bitcoin Halving in 2024 Foreshadows Significant Surge in BTC Value, According to Experts
Bitcoin is poised for a major surge in value after the next halving in April 2024, according to several analysts. Rekt Capital, an analyst firm, recently outlined the “five phases” of Bitcoin halving, starting with the pre-halving period. This phase is characterized by potentially profitable investment returns following significant price drops. Currently, Bitcoin is in this phase, with its value fluctuating between $40,000 and $44,000 after a 10% surge in November.
As the halving approaches, a pre-halving rally is expected as investors seek to capitalize on the hype. However, this is often followed by a retrace before the halving, as seen in 2016 and 2020, with dips of 38% and 20% respectively. After the halving, a re-accumulation phase occurs, marked by investor impatience and boredom. Finally, Bitcoin enters a parabolic uptrend that propels its value to new all-time highs.
Mitchell, the head of the Blockware analysts’ team, challenges the belief that the halving’s impact diminishes over time. He argues that the decreasing new supply percentage fails to consider the decreasing available supply due to Bitcoin holders. He also emphasizes the significance of price determination at the margin and predicts a surge in demand as Bitcoin enters its parabolic adoption phase, tapping into global wealth and savings.
Scott Melker, also known as the Wolf of All Streets, agrees with Standard Chartered Bank’s forecast that Bitcoin will reach $100,000 by the end of 2024. This prediction is based on the expected approval of U.S.-based spot Bitcoin ETFs and the halving event. These ETFs, which may include Bitcoin and Ethereum, are anticipated to attract substantial institutional investment. The bank also notes Bitcoin’s growing market dominance, fueling optimism for a faster price increase.
It is important to note that this article is for informational purposes only and should not be considered financial or investment advice. It is always recommended to conduct thorough research, consult a financial advisor, or perform due diligence before making investment decisions.
