Crypto expert shares 2 potential outcomes for Bitcoin price after halving

0
210

 ​[[{“value”:”Crypto expert shares 2 potential outcomes for Bitcoin price after halving By Investing.com

Breaking News

‘;

Cryptocurrency

Published Mar 22, 2024 10:39AM ET

© Reuters

Bitcoin‘s price action is currently under the influence of US spot Bitcoin Exchange-Traded Funds (ETFs) and the highly-anticipated rewards-halving event.

Elitsa Taskova, Chief Product Officer at Nexo, highlighted two contrasting scenarios post-halving. 

In an optimistic outlook, if miners can leverage their holdings without direct selling, Bitcoin’s price could soar to $100,000 in 2024, echoing a widespread sentiment among asset managers and industry pundits.

On the flip side, a less favorable condition could see Bitcoin retesting support levels around $40,000, particularly if mining facilities are forced to liquidate assets for operational funding.

The introduction of ETFs has been a pivotal factor, propelling Bitcoin to unprecedented heights and marking several all-time peaks in a short span. However, as the ETF frenzy slightly dims, the crypto community’s focus shifts towards the halving event, which is expected to be a critical determinant of Bitcoin’s future price trajectory. 

That said, this upcoming halving is particularly unique due to it being the first to follow an ETF-led rally in Bitcoin’s history. Typically, the effects of reduced mining rewards on Bitcoin’s price are observed roughly six months post-halving. Yet, with this new backdrop of prior ETF-induced growth, predictions are more speculative, navigating through uncharted territories.

Overall, the halving event is expected to bring about major shifts within the Bitcoin mining industry. The future direction of Bitcoin’s value could either establish a new price equilibrium, supporting miners amidst their hefty energy costs, or it might trigger a sell-off to maintain operational liquidity.

Additionally, the substantial purchasing influence of ETFs is expected to surpass the usual effect of supply constriction typically associated with halvings. As we approach a point in the market cycle where the supply dynamics are increasingly affected by the actions of long-term holders, their choices to either sell or hold become critical in influencing market liquidity and sentiment. 

Achieving a record peak before the halving also introduces a novel situation, yet the cycle’s evolution resembles previous patterns when aligned with the April 2021 highs. 

Crypto expert shares 2 potential outcomes for Bitcoin price after halving

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

“}]] 

Post Disclaimer

The information provided in our posts or blogs are for educational and informative purposes only. We do not guarantee the accuracy, completeness or suitability of the information. We do not provide financial or investment advice. Readers should always seek professional advice before making any financial or investment decisions based on the information provided in our content. We will not be held responsible for any losses, damages or consequences that may arise from relying on the information provided in our content.

LEAVE A REPLY

Please enter your comment!
Please enter your name here