Is Bitcoin Halving the Right Time to Invest in BTC?
Bitcoin's 4-year half-cycles are generally associated with subsequent crypto market bull runs that lead to new Bitcoin all-time highs. But is the highly anticipated halving the right time to invest in the world's largest cryptocurrency?
Based on historical bitcoin price data, the halving may be a good time for long-term investors to buy, said K33 Research senior analyst Vettel Lunde. Lunde told Cointelegraph:
“While the immediate performance after completion was slow, each halving proved to be a strong point of entry into the market. 150-400 days after the halving will be the sweet spot where BTC will be affected directionally by the pressure effect of lower mining sales.
Bitcoin hit the $60,000 mark for the first time in more than two years on February 28, halving in 47 days, and the world's first cryptocurrency increased by 30% last week.
Bitcoin halves the rate at which new BTC is released into circulation every four years. In the year The network will stop producing new bitcoins after 21 million coins have been created in 2140, which will be the year of the final bitcoin halving.
According to Brian Legend, investor and CEO of Hectic Labs, the pre-halving period can be a profitable time to hold Bitcoin. He told Cointelegraph.
“The pre-half is a good time to realize breakthroughs leading up to the actual midterm event. A pre-halving rally turns investor sentiment into a new bull cycle, but knowing when to top the market can be challenging.
Bitcoin's pre-half rally to the $67,611 mark was largely combated by inflows recorded in 10 new positions in Bitcoin exchange-traded funds (ETFs) in the United States.
According to CoinShares analyst James Butterfill.
“Total assets under management (AuM), after recent price increases, are now close to a peak of US$82.6bn, shy of the peak of US$86bn set in early November.”
According to the report, Bitcoin accounted for 94% of the revenue at $1.72 billion.
According to Sergey Gorev, risk manager at fintech platform Yuhodler, the flow of bitcoin ETFs with the pre-half estimate is a significant part of the current rally. He told Cointelegraph.
“Spot Bitcoin ETFs Buy 10 Times More Bitcoins than Miners Produce Every Day.”
Could the price of Bitcoin reach $120,000 by the end of 2024?
Bitcoin's price typically halves but sees an immediate consolidation after the halving, according to K33 Research's Lunde. he said:
“The rally before the half was due to the traders and miners who buy first, taking the prize seriously. After reduction, it tends to plunge directly into hashrate, blocking production stalls for 10 to 15-25 minutes, leading to growing uncertainty.
However, Lunde expects only a short correction, before Bitcoin continues its price movement to new all-time highs.
“Based on data from past performance and discounting the impact of halvings, Bitcoin could see a 130-150% rally in the year after the halving, peaking between $125,000 – $150,000 in 2025.”
According to Brian Legend, CEO of Hectic Labs, Bitcoin's end-of-year price could be between $80,000 to $85,000 and $120,000 to $130,000 at worst. He told Cointelegraph that this mainly depends on macroeconomic conditions:
” [The 2025 bull market] It will depend on the state of the financial markets and the fundamental outlook on the world… If the bull market goes through 2025, we will see a higher price of $180,000 to $200,000 per BTC.
RELATED: US Govt Moves $922 Million in Bitcoin Hold After BTC Price Crashes to $60,000
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
