Bitcoin Poised for Bullish Run as Halving Event Approaches

With the Bitcoin halving approaching and several positive factors converging, the future looks bright for Bitcoin.

Key Points

• Bitcoin (BTC) is expected to benefit from persistent inflation and unsustainable budget deficits in the US, according to Grayscale’s managing director of research Zach Pandl.
• The upcoming Bitcoin halving, scheduled for April 20, is anticipated to fuel Bitcoin’s price due to a reduced supply.
• Analysts are divided on the exact impact of the halving, with some predicting new all-time highs and others expecting a temporary price dip.
• On-chain data suggests Bitcoin has been in a “euphoria wave” for two months, potentially indicating a bull run with several months left.
• The recent approval of spot Bitcoin ETFs in Hong Kong could further boost demand.

Bitcoin Seen as a Store of Value

Grayscale’s Zach Pandl believes high inflation and government overspending will continue to drive demand for store-of-value assets like Bitcoin. The Federal Reserve’s inability to lower interest rates in the near future due to high inflation is seen as a positive factor for Bitcoin.

Halving Event to Reduce Supply

The upcoming Bitcoin halving, which cuts miner rewards in half, is expected to significantly impact price. With a reduced supply entering circulation, the theory suggests demand will outpace supply and drive the price up.

Analyst Opinions Divided

Industry leaders hold varying opinions on the halving’s impact. Some, like Michael Saylor, predict a surge to new highs, while others anticipate a short-term price correction.

On-Chain Data Suggests Bullish Momentum

On-chain analysis indicates Bitcoin has been in a “euphoria wave” for two months, mirroring a similar pattern observed before the 2021 bull run. This suggests the current rally could have several months left.

Hong Kong Approves Spot Bitcoin ETFs

The recent approval of spot Bitcoin ETFs in Hong Kong is seen as a positive development that could attract more institutional investment and further increase demand for Bitcoin.

Bitcoin Price Analysis

Bitcoin is currently trading around $70,640, having recovered from a recent dip following the release of US CPI data. Analysts predict a potential rise towards $73,200 or even $75,000 if it can overcome resistance levels.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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