Bitcoin (BTC) enthusiasts have long been known for their bullish predictions, but a recent report from brokerage firm Bernstein is adding weight to their claims.
The report suggests that Bitcoin’s historical price movements, particularly its relationship with halving events, make the prediction of a $150,000 price tag by 2025 not as far-fetched as it may seem.
One of the central themes highlighted in the report is the cyclical nature of the top crypto’s price cycles. Over the years, it has exhibited four-year patterns that align with its halving events.
Bitcoin Halving Cycles: A Key Factor
Bitcoin halving, or “halvening,” is a pre-programmed event that reduces the number of new cryptos created and earned by miners by half. These events, which occur roughly every four years, have historically had a significant impact on the cryptocurrency’s price.
With the next halving expected in April 2024, Bernstein’s analysis suggests that investing in successful Bitcoin miners could be a strategic way to gain exposure to the cryptocurrency market, given the historical correlations between BTC price surges and these halving events.
As of the latest data from CoinGecko, the current price of Bitcoin stands at $34,458, with a 0.6% gain over the past 24 hours and a 0.9% increase in the past seven days. On-chain data is also providing promising signals, indicating that the coin’s upward momentum may persist into November.
BTC market cap currently at $672.775 billion. Chart: TradingView.com
Is The Bull Market Approaching?
Cryptocurrency exchange Bitfinex recently published its Alpha report, which conveys an optimistic outlook for the digital asset market. The report points to several key factors that suggest the market may be entering the early stages of a bull run.
One such factor is the digital asset’s ascent to the $35,000 price range. This milestone, reached on October 23, marked a significant moment in the crypto’s recent price trajectory. Additionally, the growing institutional interest in Bitcoin is seen as a promising sign of the market’s readiness for a bull phase.
Short-Term Holders Profiting: A Positive Sign
One interesting aspect observed during BTC’s recent surge to the $35,000 range was the behavior of short-term holders. This group consists of investors who have held Bitcoin for less than six months. On this occasion, they realized substantial profits.
The Short-Term Holder Spent Output Profit Ratio, a metric indicating the profitability of this group, surged to 1.059 on the same day, the highest level seen since April 11.
Source: Glassnode
Bitcoin’s recent performance, coupled with the insights provided by Bernstein and Bitfinex, underscores the potential for Bitcoin to reach $150,000 by 2025.
As the next Bitcoin halving event approaches in 2024, investors and market participants will be watching closely to see if historical patterns continue to hold, ushering in a new era of cryptocurrency growth.
Featured image from Freepik