The world’s largest cryptocurrency Bitcoin (BTC) showed some volatility during the month of April, however, it faced extreme resistance at $30,000. On Sunday, Bitcoin made yet another attempt to breach $30,000, however, faced strong selling pressure soon after.
As of press time, Bitcoin is trading 2.12% down at a price of $28,566 and a market cap of $553 billion. It seems that Bitcoin is ending the month on a pretty flat note, however, it holds the potential to jump new highs over the next year.
So far, the Bitcoin (BTC) price is already trading at more than 75% gains since the beginning of 2023. Citing historical trends, data from Bloomberg shows that a four-months winning run in Bitcoin over the past decade has been followed by an average surge of 260% in the subsequent year. This would further propel the Bitcoin price all the way to more than $100,000.
Bitcoin has managed to overcome major macro events and the banking crisis this year and is acting as a true hedge against the traditional financial system. On the other hand, the countdown to Bitcoin halving starts which is tentatively around one year from now. If history is a lesson, the rally in the Bitcoin price should continue till the halving event and event after that. Speaking to Bloomberg, Christopher Forbes, head of CMC Invest Singapore, said:
“The biggest thing for crypto is that it’s a lightning rod for liquidity. And as liquidity returns to the market, and it is and we’re seeing that, I think crypto will continue to trade well.”
Market Analysts Bullish on Bitcoin (BTC)
After Bitcoin’s strong recovery and resilience against global macro events, analysts are bullish for the Bitcoin (BTC) price gains over the next year. Last week, analysts at Standard Chartered also stated that they expect the BTC price to touch $100,000 by the end of 2024. The bullish sentiment was major surrounding the Bitcoin halving event coming next year.
“The recent banking-sector crisis has helped to re-establish Bitcoin’s core use case as a decentralized, trustless and scarce digital asset,” said Geoff Kendrick, head of crypto and EM FX West research at Standard Chartered.
Similarly, BCA Research stated that Bitcoin could partially usurp Gold as a store value in the long term. Even if Bitcoin (BTC) approaches 25% of the gold’s market cap, its price would shoot to $160,000. On the other hand, even if 1% of the gold’s bond-market value shifts to Bitcoin, it will propel the BTC price to $185,000.
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