Will Bitcoin Price Rise Again?

by

Over the past weekend, Bitcoin‘s value decreased by approximately 8% due to heightened tensions between Iran and Israel. The digital currency had been attempting to surpass $70,000 and reach its peak of $73,000. However, the market bears have taken control, causing the price to plummet as low as $60,000. The Bitcoin community eagerly anticipates a significant event known as halving, scheduled for April 20, 2024. With Bitcoin’s recent slight rebound, will it recover and continue upward or face further challenges?

Bitcoin Price Market Performance

Bitcoin’s market behavior over the past day showcased both robustness and unpredictability. The cryptocurrency’s value surged by 2.5% and hit around $66,436.53. This price surge came as a response to heightened political tensions in the Middle East, causing market turbulence.

Over the last week, Bitcoin experienced a drop in value by around 2.84%. This downward trend has been ongoing for an extended period. At present, Bitcoin’s market capitalization is roughly $1.31 trillion as per CoinMarketCap, which underscores its prominent role in the crypto market.

The relationship between Bitcoin’s market capitalization and its volume makes up an important detail, amounting to 3.31%. This figure underscores the level of trading and accessibility of Bitcoin compared to its entire market worth. Given that only around 19.68 million BTC are in circulation out of a maximum supply of 21 million, there’s potential for continued scarcity which could impact prices significantly over time.

Bitcoin reached an all-time high of $73,750 around a month ago on March 14, 2024. However, since then, its price has dropped about 11.74%. This significant decrease from the peak demonstrates how external factors can influence its value.

Will Bitcoin Price Rise Again?

Factors Affecting the Rise of Bitcoin Price

Predicting the exact price movement of Bitcoin with absolute certainty is a challenging task due to various influencing factors. These factors include but are not limited to technological advancements, economic conditions, geopolitical situations, and regulatory decisions. Bitcoin’s price is inherently unstable, and other elements like market mood and unexpected events can further impact its future value.

1. Bitcoin Halving Effect on BTC Price

In approximately 5 days, the bitcoin community anticipates the fourth halving of Bitcoin’s reward for miners. Historically, this event has led to an increase in Bitcoin’s price. The reason being, every four years, the number of new coins created during each transaction is cut in half. Consequently, the available supply decreases while demand potentially remains the same or even increases due to scarcity. As a result, Bitcoin’s price could surge or remain stable.

Although the price of Bitcoin might follow this trend, there’s no guarantee. Previous price surges occurred, but they didn’t happen right away. The effect of halving could surface gradually, taking anywhere from several weeks to months. This is due to each halving occurring in distinct market circumstances and contexts.

Market analyst Markus Thilen forecasts that bitcoin miners will sell off large quantities of the cryptocurrency following the upcoming halving event, which could result in the disposal of approximately $5 billion worth of BTC over a period of four to six months. Consequently, the price trend for Bitcoin might remain relatively stable or sideways during this time frame, as previously observed after similar occurrences. Furthermore, Thilen expects altcoins to experience a postponement in their upward momentum compared to Bitcoin.

#Bitcoin Might Trade Sideways for 6 months As Miners Could Sell $5bn of BTC -> Here is why:
— 10x Research (@10x_Research) April 13, 2024

Marathon, Bitcoin’s biggest miner, plans to gradually sell its bitcoins after the halving to prevent revenue decrease. If other miners follow suit, about $104 million in BTC could be sold daily, possibly disrupting the supply and demand balance. According to Marathon CEO Peter Thiel, a Bitcoin price of around $46,000 will be required for Marathon to break even following the halving, suggesting minimal price fluctuations in the six months post-halving.

2. Geopolitical Tension

Political disputes can significantly influence the value trends of Bitcoin and other digital currencies. For instance, the escalating conflict between Iran and Israel has triggered market instability, impacting Bitcoin and other altcoin values. When political unrest arises, investors often exhibit apprehension, causing them to adopt a more cautious stance towards investments. Consequently, there might be a downward trend in prices for various assets, including cryptocurrencies.

After the Iran-Israel conflict, Bitcoin experienced a notable drop of 8.4%. This event underscores the volatility of the crypto market. In response, investors may choose to shift their funds from riskier assets like cryptocurrencies and instead opt for safer investments such as government bonds or gold during times of uncertainty.

If the dispute grows larger and tensions heighten, the prices of Bitcoin and other cryptocurrencies could continue to be impacted. This instability may result in greater volatility within the crypto market. Conversely, if tensions decrease and the situation becomes more stable, the price of Bitcoin and other digital assets might rise.

Conclusion

Bitcoins current worth reflects the intersection of multiple influences. A recent uptick following a downturn hints at recovery, but political strife and upcoming halving milestones bring market volatility. Historically, halving events boosted prices due to reduced supply, but geopolitical instability could lead to greater uncertainty. Extensive analysis is essential before investing, considering risk appetite and objectives. Bitcoin’s future value trend depends on both foreseen and unforeseen circumstances.

Read More

2024-04-15 11:40