Bitcoin's recovery could be the start of a rally to over $50,000 next year, thanks to a process known as halving, which is limiting the supply of new tokens, according to forecasts by crypto analysts.
Bloomberg Analysts Claim Bitcoin Pre-Half Rally
According to Bloomberg Intelligence and Matrixport, while the token is currently hovering around $28,000, the halving has the potential to trigger at least a 78% advance.
This situation, called halving or halving, halves the amount of BTC that Bitcoin miners receive as a reward for their work. This quarterly event will take place next April 2024 and will be part of the process of limiting the Bitcoin supply to 21 million tokens. Coin broke records after each of the last three halvings.
Bloomberg Intelligence analyst Jamie Douglas Coutts said that the upcoming halving is currently priced at 50% compared to previous cycles. Coutts predicts that Bitcoin could hit $50,000 by April 2024:
“Bitcoin cycles bottom around 12-18 months before the halving and this cycle structure is similar to those in the past, but many things have changed, even though the network is much stronger, Bitcoin has never been able to withstand a severe prolonged economic contraction.”
"If FTX's collapse is indeed the bottom of this cycle, then history shows that we still have about 350 days of 'accumulation' before we witness the characteristic post-breakout price action," said CCData analyst Jacob Joseph.
Markus Thielen, head of research at Matrixport, said in a recent note that Bitcoin could reach around $65,623 by April 2024, which means it could be more than double the current price.
“Bitcoin may hit an all-time high once again in the future, but 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.
*Not investment advice.
