Recent months have seen Bitcoin‘s (BTC) value soar, initially driven by the expectation of spot exchange-traded funds (ETFs) being approved in the United States. Following the actual launch of such ETFs, the demand for Bitcoin increased, leading to a new record price of about $69,000 in 2021. However, a significant correction followed this peak. As the next block reward halving nears—traditionally a bullish signal for Bitcoin’s value—speculation is rife on whether the cryptocurrency will reach or even surpass its previous highs in the upcoming weeks.
Impending Halving Spurs Market Optimism
Investor sentiment around Bitcoin shifted positively when BlackRock, the largest asset manager globally, submitted an application for a spot Bitcoin ETF with the US Securities and Exchange Commission (SEC). This application sparked a resurgence in the cryptocurrency market, propelling Bitcoin’s price to increase by over 50%. The SEC’s eventual approval of several spot ETFs, including BlackRock’s, led to Bitcoin’s value doubling, hitting a record of $73,750 on March 14.
AI Predicts Record Highs for Bitcoin
With the block reward halving expected soon, which will slash the reward for mining new blocks by half, Bitcoin is poised to become even more scarce. Historically, such events have led to substantial price rallies. Market watchers and the cryptocurrency community alike are keenly anticipating a robust surge in Bitcoin’s value post-halving.
Additionally, Perplexity, a renowned artificial intelligence chatbot, suggests a strong chance of Bitcoin setting new records before the halving, citing the market’s positive trajectory, the recent spot ETF approvals, and the forthcoming block reward reduction as key factors. Despite last week’s ETF outflows exceeding inflows, Bitcoin remains in high demand among traditional investors, with experts like Bernstein projecting a potential rise to $90,000 this year and possibly hitting over $122,000 in the future.