Despite a recent decline, Bitcoin‘s value is expected to rise following its upcoming halving, as forecasted by cryptocurrency experts. Charles Edwards, a prominent fund manager, asserts that Bitcoin historically exhibits considerable price swings during halving periods. Despite the recent 15% slide from its peak, he maintains a positive outlook for the year following the halving, which he believes offers the optimal risk-reward ratio for investors. Edwards also anticipates that less efficient miners will cease operations after the halving, scheduled between April 18-20.
Industry Experts Weigh In on Bitcoin’s Prospects
Edwards remains bullish on Bitcoin’s long-term trajectory, notwithstanding the ongoing market correction. He points to a combination of reduced supply growth and increased traditional finance demand as catalysts for a prospective surge in Bitcoin’s value over the next 12 months. Ki Young Ju, CEO of CryptoQuant, suggests a different driver for Bitcoin’s price, attributing it to flows into spot Bitcoin exchange-traded funds rather than the halving event itself. He adds that post-halving, mining costs will likely double, necessitating that miners keep Bitcoin prices at a level to remain profitable.
Halving Event Signals Potential Dip and Recovery
Crypto analyst Rekt Capital shared with his Twitter audience his belief in Bitcoin’s potential for further decline before resuming an upward trend. He indicated that Bitcoin is entering a traditional pre-halving pullback phase. Historical patterns from previous halving events support this theory. Bitcoin’s price halved before the 2020 event but recovered in the bull market of 2021, and although it declined by 33% at the 2016 halving, it ended the year positively and soared to $20,000 in 2017. The 2024 halving presents a new scenario, occurring below Bitcoin’s relative peak and without substantial backing from spot Bitcoin ETFs.
In conclusion, while Bitcoin’s price fluctuates in anticipation of its halving event, experts are generally optimistic about its post-halving performance. Market watchers and investors are poised to see if Bitcoin adheres to previous patterns or charts a new course in the evolving cryptocurrency landscape.