Veteran cryptocurrency trader and analyst @olvelez007 took to X on November 23, issuing an optimistic long-term price forecast for bitcoin (btc). Specifically, the analyst urges investors, and even more so retail investors, to accumulate more btc while the currency is still affordable.
Based on historical performance, @olvelez007 said bitcoin is poised for another magnitude jump in its valuation that could take the currency to a new level, unattainable by ordinary people.
Will bitcoin rise to 6 figures after the halving?
On “In a very short period of time, the possibility of reaching a full bitcoin will completely disappear for 99.99% of people,” @olvelez007 warned, citing the level of adoption expected in the coming months.
In particular, the trader pointed out bitcoin‘s history of adding roughly another digit as a psychological ceiling every four years, clearly detailing how prices rose from $1, then $10, $100, $1k and $10k in sequence.
According to the analyst, the rise in bitcoin price parallels mining reward “halving” events that adjust token issuance rates. Subsequently, with the next halving scheduled for April 2024, the trader foresees 6-figure prices for bitcoin on the way.
In April 2024, bitcoin is scheduled to cut its mining rewards in half. As a result, block issuances will automatically fall from 6.25 btc to 3.125 btc, ushering in the fifth epoch of the bitcoin network.
While this measure will help reduce inflation, it is unclear how bitcoin miners, who play a crucial role in maintaining network security and processing transactions, will adapt to the change.
Adjusting to the halving and keeping an eye on the SEC
As things stand, it remains to be seen how bitcoin prices will perform in the coming months. However, looking at how the coin has risen in recent months, there are signs suggesting that btc may not only break the immediate ceiling around $40,000, but also shoot up to retest the $69,000 recorded in the past bull run.
The main trigger for this optimistic outlook is the expected approval of the first batch of spot bitcoin exchange-traded funds (ETFs) in the United States. Among the pool of applicants are already Wall Street heavyweights, including BlackRock and Fidelity.
Hopes that the Securities and Exchange Commission (SEC) will approve the first spot bitcoin ETF are responsible for driving bitcoin from around $25,000 to over $32,000 and up to the current mark, trending above of the $37,000.
Featured image from Canva, TradingView chart