TL;DR
- Bitcoin’s price recently soared above $56,000, with predictions suggesting a further surge to new all-time highs due to the halving event and investor sentiment.
- Bullish market indicators, such as negative exchange netflows and rising futures open interest, hint at increased confidence and trading activity in BTC.
BTC’s Odds to Skyrocket
The price of Bitcoin (BTC) has gone through the roof in the past several hours, rising to almost $57,000 (per CoinGecko’s data), whereas its market capitalization surpassed the $1.1 trillion mark. Despite being up over 135% in a year, the primary cryptocurrency might be just at the beginning of a substantial rally that could take it to a new all-time high in the following months (at least according to some prominent investors and analysts).
The American hedge fund manager Mark Yusko recently claimed that the industry is currently in a “crypto summer” mode, during which BTC might hover between “higher highs and higher lows.” He believes the enhanced volatility would continue until the asset reaches “a fair value” of approximately $75,000.
Yusko predicts that such a peak would occur around June, two months after the next halving, which will reduce the rate at which new BTC is mined. In his view, this is when “the crypto fall” would take place, accompanied by increased hype and FOMO (“Fear of Missing Out”). The combination of all those factors could fuel a BTC price explosion toward $150,000, Yusko concluded:
“We are going to get that FOMO, and in the past, that’s gone to 2.3 times fair value. So when the fair value was 30,000 in the last cycle, we got to 68-69,000. This time, let’s say we only get two times because there’s not as much leverage.”
The X user EGRAG CRYPTO gave their two cents, too, arguing that BTC is “programmed” to hit $200K by April 2025. The analyst maintained that the crypto market is in the early stages of a bull run, warning about significant pullbacks, “which are natural and healthy.”
The most optimistic bet came from Max Keiser – a famous American filmmaker and outspoken supporter of Bitcoin. He thinks that buying the cryptocurrency nowadays provides a unique opportunity to gain colossal profits in the future.
Keiser compared the current price of BTC to the value of class A Berkshire Hathaway shares nearly 40 years ago. In 1985, a single stock was worth $1,500, while recently, it surpassed $628,000. If BTC mimics the same growth, its valuation could skyrocket to a staggering $21 million per coin.
Observing Some Important Indicators
The BTC halving is not the only factor hinting that the asset’s price might take off in the near future. According to CryptoQuant, Bitcoin exchange netflows have been predominantly negative since mid-February.
The shift from centralized platforms to self-custody methods could be viewed as bullish since it reduces immediate selling pressure. It also signals growing confidence in BTC and investors’ long-term commitment to hold their stash.
Bitcoin open interest – the total number of outstanding BTC futures contracts that have not been settled – has also been on the rise in the past month. The metric’s surge suggests a higher level of trading activity and could be a precursor of a significant price movement in any direction.
Those willing to dive deeper and explore BTC’s chances to reach a new ATH in 2024 could take a look at our dedicated video below:
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