2023-08-27 05:15:00
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Investing.com – In a note released earlier this week, analysts at Pantera Capital shared a bullish, especially medium-term outlook for bitcoin, estimating that the digital currency’s price might rise nearly 5 times by 2025.
To explain their prediction, the analysts highlighted the potential for a halving of the Bitcoin network, saying that studying the history of Bitcoin’s reaction to these events points to a strong bullish trend ahead.
“A currency has historically bottomed 477 days before the halving, surged before the halving, and then exploded higher followingward,” analysts at Pantera Capital wrote. “The post-halving highs continued for 480 days, from the halving to the top of the next bullish cycle,” the analysts added.
However, this does mean that Bitcoin has already bottomed out at the end of 2022. Moreover, Pantera believes that “if history repeats itself,” Bitcoin should reach a high of 35,000 before the halving, and then rise to $14,8000 following halving.
Remember, the halving, which happens every four years for bitcoin, corresponds to the halving of the reward for bitcoin miners. They are paid out in “newly issued” bitcoins, meaning that halvings reduce the rate of increase in the supply of bitcoins, with a mechanical bullish effect on their price, in theory.
Therefore, in the next halving scheduled for April 2024, the rewards for miners will decrease from 6.25 BTC per block to 3,125.
Finally, it should be noted that although Bitcoin still shows a growth of more than 57% compared to the beginning of the year, the digital currency has corrected significantly in recent weeks. In fact, following making a yearly high near $32,000 on July 14, it is currently trading at $26,000, following touching recent lows around $25,000.
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