After lingering around $42,000 for weeks, Bitcoin has broken the barrier to exceed the $46,000 threshold. The current trading price of BTC stands at $46,297.90, indicating a 3.995 rise in the last 24 hours. This surge also represents an increase of 7.20% and 0.97% in the last 7 days and 30 days, respectively. The 24-hour trading volume has risen by 16.21%. The recent approval of Spot Bitcoin ETF applications by the US Securities & Exchange Commission has notably alleviated the selling pressure imposed by GBTC.
Bitcoin is poised for accelerated growth, underpinned by institutional adoption, regulatory advancements, and macroeconomic trends.
Arthur Hayes and Fred Krueger’s Aspiration for BTC to Reach $1M
The possibility of Bitcoin reaching a valuation of $1 million is within reach, though it remains a lofty aspiration for every holder, irrespective of their background. While the recent surge in the token’s value has sparked optimism for further escalation, this should not be conflated with the likelihood of reaching $1 million, which would necessitate a substantial surge in the market cap.
Arthur Hayles, co-founder of BitMEX, envisions the $1M milestone as a possibility following Moody’s downgrade of NYCB to junk status. He remains bullish on BTC gaining traction in the event of any further turmoil in the traditional financial sector. The crypto sphere would gain greater recognition as a haven from the repercussions of any such downturn. Additionally, the Federal Reserve is anticipated to announce rate cuts in the near future, leading to increased capital availability that would bolster the ecosystem’s liquidity, consequently driving the price upwards.
Notably, Fred Krueger, a prominent figure in the crypto industry, has provided a more technical perspective, labeling Bitcoin as a persistent power law. Fred posits that both the price and time favor further increases. For instance, Bitcoin’s value was initially under $100 in 2011 and has since exhibited exponential growth, approaching the $65,000 mark before settling near $50,000. Skepticism abounds, with many suggesting that touting such an ambitious target is simply a ploy to drive up prices. However, increased activity could indeed spur a surge, particularly in an optimistic or bullish environment.
Impact of Halving Events on Bitcoin
Bitcoin’s next Halving is scheduled for April 2024. This recurring process, occurring every 4 years, reduces the mining reward and circulating supply. Historical data illustrates that in the 150 days following these pivotal events, BTC has consistently experienced upward price movements.
For instance, on November 28, 2012, BTC was valued at $12.35, but surged to $127 in the subsequent 150 days. Similarly, on July 9, 2016, its value escalated from $650 to $758 within the same timeframe. Furthermore, the May 11, 2020 Halving event elevated the price from $8,821 to $10,943. Throughout these Halving events, mining rewards decreased from 50 BTC per block to 6.25 BTC per block.
The post-Halving price of BTC is contingent on its standing at the time of the event. While the prevailing volatility makes speculation challenging, an assessment of $50,000 appears plausible. BTC price predictions have even set this figure as achievable by the end of 2023. Bitcoin continues to be viewed as a store of value and a hedge against unfavorable inflation rates. Long-term scarcity in the circulating supply will further underpin its valuation.
Future Outlook for Bitcoin Beyond 2024
2024 will present a critical juncture for Bitcoin, with the current support level of $38,000 remaining relevant until BTC reaches $50,000, marking a transition to the next level. Although a substantial downturn could retest the $40,000 level, no adverse events are imminent, given the easing of selling pressure. In the subsequent years, Bitcoin is expected to pick up from its previous year’s performance, potentially reaching $100k by the close of 2025, and surpassing $500k by 2030. However, challenges related to scalability and competition from other cryptocurrencies may temper its growth rate, albeit technical indicators continue to signal optimism.
Conclusion
Bitcoin’s ascent from $20,000 to $46,000 has painted an encouraging picture. Analysts have bolstered this growth by highlighting its consistent upward trajectory, akin to a persistent power law. The green signal from the US SEC for its ETF applications has further set the stage for institutional adoption to be a pivotal driver of its value.