Bitcoin ‘halving’ next year predicts rally in coin to $50,000

The largest digital asset has climbed 70% since December 31 in a partial revival en route to an epic 2022. While the coin is currently struggling in the region around $30,000, the halving has the potential to trigger an advance of at least 78%. , according to Bloomberg Intelligence and Matrixport.

The halving – or halving – cuts in half the amount of tokens that bitcoin miners receive as a reward for their work. The quadrennial event is next scheduled to happen around April 2024 and is part of the process of capping the supply of bitcoin at 21 million tokens. The coin hit a record after each of the last three halvings.

Bloomberg Intelligence analyst Jamie Douglas Coutts said the upcoming halving is currently priced at 50% based on previous cycles. Coutts estimates that bitcoin could reach $50,000 by April 2024.

“The bitcoin cycle bottomed out about 12-18 months before the halving and this cycle structure looks very similar to previous ones, although a lot of things have changed – while the network is quite strong, bitcoin has never experienced a serious long-term pullback,” he said. The economic contraction has not been tolerated,” he said.

The bitcoin boom has been delayed as expectations for a Federal Reserve interest rate cut cool amid persistent inflation. US regulatory action on crypto in the wake of the collapse of the FTX exchange in November 2022 also threatens to darken the market outlook.

ftx low

“If FTX’s collapse was indeed the bottom of this cycle, history would suggest we still have about 350 days of ‘accumulation’,” said Jacob Joseph, an analyst at CCData, after observing the breakout price action. May go.”

Marcus Thielen, head of research at Matrixport, said in a recent note that bitcoin will reach around $65,623 by April 2024 – more than double the current price.

Bitcoin is down about $41,000 from its all-time high of nearly $69,000 in November 2021 — which came 18 months after the 2020 halving. The cryptocurrency market crashed last year as central banks raised rates to ease pricing pressure and digital-asset companies got bogged down.

“Bitcoin could once again reach a new all-time high in the future, however, it is unlikely to see the same growth as previous cycles due to increased market size and competition from other digital assets,” said Joseph of CCData.