Pantera Capital, a leading investment firm in the cryptocurrency space, predicts that the price of Bitcoin is on track to reach its next all-time high by mid-2025. This is based on their analysis of market trends and historical price patterns. Pantera’s forecast aligns with the growing interest and widespread adoption of Bitcoin, making it a promising investment choice for the future. Investors and enthusiasts may find this prediction valuable as they navigate the volatile world of cryptocurrency.
Bitcoin Halving: What It Means for the Future of Bitcoin
Bitcoin’s Price Projection After the Halving
Bitcoin continues to be shaky at around $26,000 after a violent crash last Thursday. However, the flagship crypto asset is not likely to see prominent gains before the much-anticipated halving that is expected to occur on April 20, 2024.
According to Pantera Capital’s recent projection, the next halving would see Bitcoin surging to $35k before it and $148k after the fact, citing historical patterns.
Bitcoin Halving Observations by Pantera
Pantera Capital asserts that the performance of Bitcoin’s price is greatly influenced by its halving cycles. With the next one expected in 2024, the company is betting the trend will continue.
In the latest edition of their “Blockchain Letter,” published on August 22nd, the crypto-focused hedge fund reiterated its optimistic predictions for Bitcoin’s price in 2024 following the halving when the block reward fell from 6.25 to 3.125 BTC.
Pantera stated that the first halving reduced the supply of new BTC by 17% of the total outstanding bitcoins and added that the event had a huge impact on new supply as well as on the price. The second, in 2016, slashed the supply of new bitcoins by only one-third as much as the first. Pantera observed this decrease in supply corresponded precisely to a one-third reduction in price impact.
Similarly, the halving in 2020 reduced the supply of new bitcoins by 43% relative to the previous halving. Pantera noted that “it had a 23% as big an impact on price.”
“The next halving is expected to occur on April 20, 2024. Since most bitcoins are now in circulation, each halving will be almost exactly half as big a reduction in new supply. If history were to repeat itself, the next halving would see bitcoin rising to $35k before the halving and $148k after.”
New Peak in July 2025?
Pantera said that Bitcoin has historically bottomed 477 days prior to the halving, experiencing an ascent in the run-up to the event and surged dramatically afterward.
The post-halving rallies have averaged 480 days from the event to the peak of that next bull cycle. In such a scenario, with April 2024 halving as the starting point, Bitcoin is anticipated to attain its next all-time peak around July 2025.
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Understanding Bitcoin’s Future Through Halving Cycles
Bitcoin, the world’s leading cryptocurrency, has experienced significant volatility recently, with prices hovering around $26,000 following a sudden crash. However, experts believe that Bitcoin’s true potential lies in its halving events, the next one projected to take place on April 20, 2024.
Pantera Capital, a prominent crypto-focused hedge fund, has provided insights into the potential impact of the upcoming halving on Bitcoin’s price. According to their analysis, Bitcoin could surge to $35,000 before the halving and reach an impressive $148,000 after the event, based on historical patterns.
Bitcoin Halving and Its Significance
Pantera Capital emphasizes that Bitcoin’s price performance is highly influenced by its halving cycles. With the next halving scheduled for 2024, the hedge fund predicts a continuation of the trend.
In their recent “Blockchain Letter” published on August 22nd, Pantera Capital highlights the positive predictions for Bitcoin’s price after the 2024 halving, which will reduce the block reward from 6.25 to 3.125 BTC.
Looking back, the first halving resulted in a 17% decrease in the supply of new BTC, signaling a significant impact on supply and price. The second halving in 2016 saw a reduced supply of new bitcoins by one-third compared to the first halving, resulting in a corresponding one-third reduction in price impact, as observed by Pantera.
The halving in 2020 further reduced the new bitcoin supply by 43% compared to the previous halving, which had a 23% impact on price, according to Pantera Capital’s analysis.
“The next halving is expected to occur on April 20, 2024. Since most bitcoins are now in circulation, each halving will be almost exactly half as big a reduction in new supply. If history were to repeat itself, the next halving would see bitcoin rising to $35k before the halving and $148k after.”
Anticipating the Future: Bitcoin’s Next Peak
Pantera Capital reveals that Bitcoin has historically reached its lowest point around 477 days before each halving, followed by a steady upward trend leading up to the event and a remarkable surge afterward.
Based on historical data, the post-halving rallies last approximately 480 days, culminating in the peak of the next bull cycle. Taking the April 2024 halving as the starting point, experts predict that Bitcoin’s next all-time high will likely be reached around July 2025.
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