Bitcoin Price Forecast Post Halving : Bullish or bearish ?

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The Bitcoin halving is just around the corner, scheduled for April 20, 2024. This significant event has sparked interest among cryptocurrency enthusiasts and investors globally. Historically, Bitcoin halvings have influenced BTC‘s price pattern. In this article, we explore predictions from industry experts regarding the possible price direction of Bitcoin post-halving. Let’s examine their insights to better grasp the potential bull and bear scenarios.

Tim Draper’s Optimistic Forecast

Tim Draper, a venture capitalist, predicts that Bitcoin’s value will more than triple by the close of 2024, surpassing $250,000. He credits this projected increase to investments pouring into Bitcoin spot exchange-traded funds (ETFs) and the forthcoming Bitcoin halving event.

Draper is convinced that the green light for Bitcoin spot ETFs in the US has rekindled enthusiasm for Bitcoin and given investors an easier method to invest in the digital currency. He views Bitcoin as a protective asset against depreciating fiat currencies and thinks its limited supply and expanding popularity will make it more attractive to a larger audience.

Draper highlights the importance of Bitcoin’s fourth halving, explaining that this event will result in less supply being released into circulation, causing demand to rise and prices to go up. In essence, Draper believes Bitcoin is a safe investment against inflation and advises investors to put in small proportions (less than 10%) as part of their risk management strategy.

Michael Saylor’s Confidence in Bitcoin’s Potential

Michael Saylor, the CEO of MicroStrategy, expresses optimism about Bitcoin’s future value surpassing that of gold. He believes Bitcoin possesses gold-like qualities without its drawbacks, making it an attractive investment option. According to him, Bitcoin is expected to attract capital away from other investments, including the SPDR S&P 500 ETF, and gain popularity among investment funds.

Saylor additionally drew attention to the approaching Bitcoin halving, set to decrease the generation of fresh bitcoins, possibly leading to an increase in price due to heightened investor interest.

Cathie Wood’s Bullish Outlook

Cathie Wood, the CEO of Ark Invest, is confident that bitcoin’s price could hit $3.8 million in the future. This optimism stems from an increase in institutional investment and the rollout of new Bitcoin ETFs. Initially, Wood predicted Bitcoin would reach $1.5 million by 2030, but more recent developments have significantly boosted her expectations.

Based on her assessment, institutional investors could possibly earn an additional $2.3 million by putting over 5% of their investments into Bitcoin.

Since the SEC gave its approval for companies like Ark to launch spot bitcoin ETFs, there has been a significant surge in interest for bitcoin, resulting in record-breaking inflows into these ETFs. Industry insiders believe that the upcoming bitcoin halving could further boost demand due to decreased supply.

Wood believes that the upcoming bitcoin halving could resemble past events, resulting in substantial price increases for bitcoin. She is optimistic about the emerging financial landscape of bitcoin and sees great possibilities for growth in the future.

Richard Teng’s Positive Prediction

New CEO of Binance, Richard Teng, believes Bitcoin (BTC) will reach over $80,000 by year-end as a result of reduced supply and heightened demand. The crypto market has experienced unprecedented peaks following the United States’ approval of a Bitcoin ETF, with Bitcoin touching $73,000 in the previous week.

The surge in institutional adoption is fueling the Bitcoin market’s upward trend, causing financial institutions such as Standard Chartered to boost their year-end price prediction for Bitcoin to an impressive $150,000. Furthermore, Teng anticipates increased investment from family offices and endowment funds in Bitcoin ETFs. Despite the market’s fluctuations, the CEO remains optimistic, believing that these ups and downs will eventually prove advantageous for cryptocurrency.

JP Morgan’s Cautious Approach

Instead of “While other industry experts have made optimistic price forecasts for Bitcoin after halving, JP Morgan analysts have adopted a more conservative stance, predicting that the upcoming halving will harm miner profits due to smaller rewards and increased production costs. Consequently, the price of Bitcoin could decline, possibly reaching $42,000 following the event.”

Historically, the cost of producing a Bitcoin note has influenced its market price with an approximate range of $26,500 at present. After the next halving event, production costs may rise to around $53,000, but could later drop back down to $42,000 as excitement subsides. A potential 20% decrease in the Bitcoin network’s hashrate following the halving might also contribute to this price reduction.

In the current mining landscape, miners who can keep their electricity expenses low and operate more efficient rigs will have an advantage and are more likely to thrive. Conversely, those with higher production costs may find it difficult to survive. Furthermore, larger publicly traded miners are believed to be better positioned to weather this demanding phase and expand their market presence following the halving event, as observed in 2022 trends.

At present, the cost of a bitcoin is standing at $64,231.66, marking a 2.42% rise over the past 24 hours. Bitcoin’s market value amounts to an impressive $1.26 trillion. Notably, the cryptocurrency’s trading volume has surged by 12.93%, resulting in a total trading volume of $39.59 billion.

Bitcoin Price Forecast Post Halving : Bullish or bearish ?

Conclusion

The Bitcoin halving due soon is significant to the crypto community as it influences Bitcoin’s future price direction. Industry professionals have expressed differing opinions about how this event may impact BTC‘s price trend. Some predict a bullish surge due to increased institutional investment and scarcity, while others caution against potential production declines and market dynamics changes. As the halving event nears, it’s essential for investors and fans to stay informed and prepared for possible outcomes in the volatile cryptocurrency sector.

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2024-04-17 11:03