In recent weeks, the price of cryptocurrencies, especially BTC, has rebounded. And, despite some rollercoaster movements, the focus is currently on the queen of cryptocurrencies, which is preparing to undergo its 4th halving. This dynamic leads some analysts to believe that the current bullish market is only the beginning of a much larger wave, according to the latest research by CryptoQuant.
The Bitcoin halving, an integral mechanism of the Bitcoin protocol that halves the rewards given to miners every four years, decreases the supply of new bitcoins. This event has historically led to a price increase due to a reduced supply against a constant or increasing demand. Despite a recent correction of more than 10% in its price, CryptoQuant's analysis reveals that key indicators remain well below historical highs, suggesting a market with significant and positive room for growth.
The approval of spot Bitcoin ETFs in the USA has rekindled interest in Bitcoin. According to CryptoQuant, only 48% of current investments come from newcomers, far from the typical 84 to 92% of previous bullish cycle peaks. Standard Chartered Bank even anticipates a Bitcoin price reaching $150,000 in 2024. These predictions, bolstered by the interest of major financial players, suggest a bullish cycle far from over.
The next halving is seen by many analysts as a potential catalyst for a new price increase. However, the Bitcoin market is influenced by many factors, including regulatory and institutional ones, which can impact forecasts. Therefore, it is crucial to adopt a nuanced and informed approach to these developments.
