Bitcoin's rebound is just the beginning of a rally that will take it to over $50,000 next year, courtesy of a process known as halve that curbs the supply of new tokens, according to projections by cryptanalysts.
The largest digital asset is up 70% since Dec. 31 in a partial rebound from an epic loss in 2022. While the token is currently struggling near $30,000, the halving has the potential to trigger a breakthrough of at least 78%. , according to Bloomberg Intelligence and Matrixport.
A halving, or halving, halves the number of tokens Bitcoin miners receive as a reward for their work. The quadrennial event will take place around April 2024 and is part of the process of limiting the supply of Bitcoin to 21 million tokens. The coin hit records after each of the last three halves.
Currently, the next halving is priced at 50% based on previous cycles, said Jamie Douglas Coutts, an analyst at Bloomberg Intelligence. Coutts predicts that Bitcoin can scale $50,000 by April 2024.
โBitcoin cycles bottom around 12-18 months before the halving and this cycle structure looks similar to previous ones, although a lot has changed, although the network is much stronger, Bitcoin has never suffered a severe and prolonged economic contraction,โ he said. .
Bitcoin's rebound has faltered of late, tempered by expectations of cooling interest rate cuts from the Federal Reserve amid persistent inflation. A US regulatory crackdown on cryptocurrencies in the wake of the November 2022 crash of the FTX exchange also threatens to darken the market outlook.
FTX low
โIf the FTX crash was indeed the bottom of this cycle, then history would suggest we still have roughly 350 days of 'accumulation' before we witness the characteristic post-halving breakout price action,โ he said. jacob josephCC Data Analyst.
Markus Thielen, head of research at Matrixport, said in a recent note that Bitcoin will reach around $65,623 by April 2024, more than double the current price.
Bitcoin remains close to $41,000 below its all-time high of nearly $69,000 in November 2021, which came 18 months after its 2020 halving. Crypto markets crashed last year as central banks hiked rates. to curb price pressures and digital asset companies imploded.
"Bitcoin may hit a new all-time high again in the future, however it is unlikely to see the same growth as in previous cycles due to increasing market size and competition from other digital assets," CCData's Joseph said.
