By NewsBlogger Bitcoin has experienced significant attention and activity due to recent halving events, with analysts providing mixed signals on the current rally and predictions of further growth in the cryptocurrency market.
At a glance
- Bitcoin has experienced three halving events in 2012, 2016, and 2020, leading to surges in price to new all-time highs.
- Spot Bitcoin ETFs have been introduced on US stock exchanges, providing new avenues for investors to access and trade Bitcoin.
- Analysts have differing views on the current rally, with some suggesting a departure from historical patterns and potential misconceptions about pricing.
- Funds have been flowing out of the Grayscale Bitcoin Trust (GBTC) for more than two months, with significant outflows recorded recently.
- Overall, the crypto market capitalization has reached $2.85 trillion, with Bitcoin reaching a new peak price of $72,700 and other cryptocurrencies also seeing significant price surges.
The details
Bitcoin has been the subject of significant attention and activity recently due to its ongoing cycles of halving events.
The cryptocurrency has experienced three halving events in 2012, 2016, and most recently in 2020. Following each halving event, Bitcoin has surged to new all-time highs, with the most recent peak surpassing the previous record set in 2021. Last week, Bitcoin soared above $70,000, marking a significant milestone in its price trajectory.
In the realm of investment products, spot Bitcoin ETFs have been introduced on US stock exchanges, providing investors with new avenues to access and trade Bitcoin.
Analyst Views on the Bitcoin Rally
However, there have been mixed signals from analysts regarding the current rally.
Analyst PlanB has suggested a departure from historical patterns in the current rally, highlighting a potential misconception that Bitcoin’s price could have already been priced in.
Rekt Capital, another analyst, has identified four distinct phases of the Bitcoin halving cycle.
These include the pre-halving rally, the pre-halving retrace involving short-term traders selling positions to realize profits, and the final pre-halving retrace involving a deeper pullback in Bitcoin’s price.
Following the halving event, the re-accumulation phase occurs, with the re-accumulation range coinciding with the new all-time high area.
Rekt Capital predicts the onset of a Parabolic Uptrend phase, which may be shorter than in previous cycles due to a potential accelerated market cycle.
Developments in Cryptocurrency Investment Landscape
On the other hand, there have been notable developments in the cryptocurrency investment landscape.
Funds have been flowing out of the Grayscale Bitcoin Trust (GBTC) for more than two months, with significant outflows recorded in recent days.
Grayscale’s Bitcoin holdings have declined by 36% since GBTC was converted into a spot ETF in January, with remaining assets still worth $28.5 billion at current BTC prices.
Competing investment products in the market have seen varying levels of activity.
BlackRock and Fidelity have been acquiring more BTC than Grayscale, with VanEck’s spot Bitcoin ETF, HODL, experiencing a record inflow of $119 million on March 11. Additionally, Fidelity’s FBTC fund had inflows of $473 million, while Bitwise’s BITB saw a $50 million inflow.
Overall, the crypto market capitalization has reached $2.85 trillion, coming close to its all-time high.
Bitcoin has powered to a new peak price of $72,700, while other cryptocurrencies like Ethereum, Solana, Ripple’s XRP, and Avalanche have also seen significant price surges.
Analysts are predicting further growth in the cryptocurrency market, with expectations of Bitcoin peaking in early 2025 and potentially reaching $150,000 by mid-2025. There is also a focus on growing funds into ETFs and purchasing shares in Bitcoin mining companies, as well as the integration of Bitcoin into traditional asset portfolios with a $150K price target.
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| cryptopotato.com |
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| – Bitcoin has undergone three halving events in 2012, 2016, and 2020 – Bitcoin surged to new all-time highs after each halving event – Bitcoin has already surpassed its previous peak set in 2021 – Bitcoin soared above $70,000 last week – Spot Bitcoin ETFs have been introduced on US stock exchanges – Analyst PlanB suggests a departure from historical patterns in the current rally – PlanB highlighted a misconception that BTC’s price could have been priced in already – Rekt Capital identifies four phases of the Bitcoin halving cycle – The pre-halving rally occurs around 60 days before the event – The pre-halving retrace involves short-term traders selling positions to realize profits – The final pre-halving retrace involves a deeper pullback in Bitcoin’s price – The re-accumulation phase follows the halving event – The re-accumulation range coincides with the new all-time high area – Rekt Capital predicts the onset of a Parabolic Uptrend phase – The Parabolic Uptrend phase may be shorter than in previous cycles due to a potential accelerated market cycle |
| cryptopotato.com |
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| – Funds have been flowing out of the Grayscale Bitcoin Trust (GBTC) for more than two months – March 11 was the largest outflow for the month, with $494 million worth of BTC exiting the fund – BitMEX Research labeled it a record outflow, but clarified that GBTC outflows exceeded $500 million for five days in January and again on Feb. 29 – Grayscale’s Bitcoin holdings have declined by 36% since GBTC was converted into a spot ETF in January – Before the conversion, Grayscale held around 620,000 BTC, but that figure has now fallen to 395,744 – Remaining assets are still worth $28.5 billion at current BTC prices – Grayscale’s conversion to a spot ETF allowed investors to redeem their shares for the underlying asset for the first time – Grayscale’s spot ETF has higher fees than competing products from BlackRock and Fidelity – BlackRock and Fidelity have been acquiring more BTC than Grayscale – VanEck’s spot Bitcoin ETF, HODL, saw a record inflow of $119 million on March 11 – Fidelity’s FBTC fund had inflows of $215 million, while Bitwise’s BITB had a $50 million inflow – Crypto market capitalization has reached $2.85 trillion, just 8% away from its all-time high – Bitcoin powered to a new peak price of $72,700 on March 11 – Ethereum reached $4,000 and Solana topped $150 – Ripple’s XRP surged over $0.70 in a 15% gain, while Avalanche reached $50 with a 19% surge |
| cryptopotato.com |
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| – Bitcoin’s rally has reached a new all-time high above $70,000 – Analysts expect Bitcoin to peak in early 2025 – Historical patterns suggest Bitcoin peaks within 518-546 days after halving – Current cycle shows signs of acceleration, deviating by approximately 260 days – Potential peak predicted between December 2024 and February 2025 – Bernstein analysts confident in Bitcoin reaching $150,000 by mid-2025 – Predict uptrend following next halving – Emphasis on growing funds into ETFs and advised purchasing shares in Bitcoin mining companies – Gautam Chhugani and Mahika Sapra wrote about Bitcoin’s integration into traditional asset portfolios and $150K price target. |
