- Peter Schiff opined that Bitcoin price might not benefit from this event.
- Despite its high value, a key metric showed that buying BTC could still remain profitable.
Pronounced Bitcoin [BTC] Skeptic Peter Schiff has made another prediction, stating that the coin's supply would not be halved by the halving.
Schiff posted this on March 12 on X (formerly Twitter) and explained his reasons.
According to him, 90% of the total Bitcoin supply already exists. Therefore, only supply growth needs to be cut, not Bitcoin's.
Source: X
Schiff's hypothesis is not valid
If we were to follow the economist's opinion, it might be difficult for BTC's value to experience exponential growth after the halving.
This was not the first time Schiff criticized the coin. But despite his vocal skepticism, Bitcoin continued to defy his prediction.
This year, the coin's price has increased by an incredible 64.90% while reaching new all-time highs.
Looking ahead to the halving, which would most likely occur in April, miners will receive 3,125 BTC as a reward. Historically, the price of Bitcoin has risen to astounding heights following the halving.
But this time was different as the coin hit a new high before the event.
However, this does not exclude the possibility of further growth. For example, BTC rose from $12 to $126 during the first halving of 2021. Halvings in 2016 and 2020 also resulted in astronomical values for the coin.
Opinions and history alone do not move the markets for AMBCrypto. Therefore, we felt it was necessary to assess the on-chain health of Bitcoin.
One metric we looked at was difficulty band compression.
For the uninitiated, difficulty band compression quantifies zones of high and low compression, which can be helpful in identifying buying and selling opportunities.
Source: Glassnode
With a compression threshold of 0.05, the metric suggests that Bitcoin remains a strong buying opportunity at $72,864.
If this indicator triggered a sell signal, the value would have been between $0.10 and $0.16 as in the fourth quarter of 2021.
Inflation is falling, the hype is returning
Another metric we checked was the annual inflation rate. According to data from Santiment, AMBCrypto found that Bitcoin’s annual inflation rate had fallen to 0.54.
If the inflation rate continues to fall as the halving approaches, gains for Bitcoin could accelerate within a few months. Additionally, attention to the coin’s direction has increased, as evidenced by social volume.
At a value of 367, the increase in social volume suggests that mentions of the coin on various social channels have increased.
If this metric continues to rise, demand for BTC could also increase.
Source: Santiment
How much is 1,10,100 BTC worth today?
If this is the case, Schiff's opinion may not hold water and the price of Bitcoin could skyrocket into six figures.
However, traders need to be careful with their optimism as a correction could occur.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.