Here are five catalysts that could push Bitcoin to new all-time highs in six months, according to IntoTheBlock
Well-known analytics firm IntoTheBlock says Bitcoin (BTC) has an 85 percent chance of reaching a new all-time high within the next six months.
Lucas Outumuro, head of research at IntoTheBlock, says the forecast is based on five catalysts that could serve as tailwinds for the leading crypto asset by market cap in the coming months.
The first is the highly anticipated Bitcoin halving in April, which will halve BTC miners' rewards. According to Outumuro, BTC miners are “more prepared than ever” to reduce BTC issuance.
“For this reason, as well as the continued specialization in miner equipment, we expect Bitcoin’s all-time high to reach another all-time high just a month after the halving.”
Outumuro also says that the halving will likely lead to less selling pressure as BTC's issuance inflation rate will fall from 1.7% to 0.85% after April.
The second catalyst that could push BTC to record highs is new inflows from the recently approved Bitcoin Exchange Traded Funds (ETFs). According to Outumuro, BTC ETFs have accumulated around $4 billion in new inflows just a month after their launch.
“This could lead to growing demand for Bitcoin as supply issuance declines post-halving, leading to potentially explosive momentum for Bitcoin price.”
The third tailwind is the expectation that the Federal Reserve will begin cutting interest rates as early as March. According to the researcher, traders are already at the forefront of the Fed's easing of monetary policy.
“Whether it happens in March or in the summer, the forecast rate cuts are priced in and are leading to rising markets. As interest rates begin to fall, it becomes cheaper to borrow, leading to more liquidity in financial markets, which ultimately tends to benefit the prices of Bitcoin and stocks alike.”
The fourth catalyst is the upcoming US presidential election. Outumuro says the Fed could take measures ahead of the event to put the economy in a good picture.
“With a presidential election coming up in November 2024, there is an implicit incentive for the Fed to support the economy to increase Biden’s re-election chances.”
Finally, Outumuro predicts that companies around the world will accumulate BTC in the coming months.
“With spot ETFs now making it easier than ever for Wall Street to access Bitcoin, it is likely that we will see more hedge funds accumulating Bitcoin in the coming quarters…”
More and more companies in Asia and South America have adopted Bitcoin for part of their government coffers. With the ETF now legitimizing Bitcoin in the US, this pattern could expand nationwide.”
You can read the full report here.
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