Cover image via www.freepik.com
Disclaimer: The opinions expressed by our writers are their own and do not reflect the views of U.Today. The financial and market information provided on U.Today is for informational purposes only. U.Today is not liable for any financial losses incurred when trading cryptocurrencies. Do your own research by contacting financial experts before making any investment decisions. All content is believed to be accurate at the time of publication, but some offers mentioned may no longer be available.
The highly anticipated Bitcoin (BTC) halving is just around the corner, with current predictions putting the schedule at some point in April. The occurrence of this event is particularly likely to change the outlook of the entire market as it will lead to a collapse in the rate of issuance of Bitcoin, which could ultimately impact its price. Crypto analytics platform CryptoQuant has provided insights into the coin's potential price target post-halving.
The CryptoQuant analysis covered the first three Bitcoin halving events and highlighted a common theme regarding price action. The coin typically begins an uptrend a year before the halving and continues its uptrend to reach a new high after the halving before entering a bearish phase.
The first and second halvings saw Bitcoin's price skyrocket from $2.48 and $269 a year before the event and peaked at $1,131 and $2,518 about a year later. Similar trends were evident in the third halving cycle of 2020, when the price rose from a low of $7,255 to a high of $56,615 a year later.
Ahead of this current halving cycle, Bitcoin price has been trending upwards since April last year, and if history repeats itself, it would set a more ambitious price that could see it surpass its all-time high (ATH) of over $69,000.
Bitcoin ETF catalyst
In a potential attempt to reach new price levels, Bitcoin could benefit much more given the emergence of Bitcoin Exchange Traded Funds (ETFs) in US markets.
Since their launch, spot Bitcoin ETF products have not contributed to overall price growth, but rather have led to bouts of liquidation as funds flowed out of the Grayscale Bitcoin Trust (GBTC).
Nonetheless, with Bitcoin halving, the ETF could serve as a necessary element to trigger the next bull market cycle.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.