With bitcoin rising and getting closer to breaking all-time highs, an x analyst believes $150,000 post-halving is “on schedule.” the analyst twitter.com/Ashcryptoreal/status/1777403465745957032″ target=”_blank” rel=”nofollow”>remains bullish in a post, highlighting several fundamental developments that could push the world's most valuable currency to a new valuation and more than doubling of spot rates.
Currently, the path of least resistance remains north. Buyers have shaken off the bears of the last trading month and found an anchor on the March 20 bull bar.
On April 8, the coin spiked above the key settlement level at around $71,800. bitcoin has since cooled, but the advantage remains and may form the basis of another break above $74,000.
For the bulls to be firmly in control and align with analysts' outlook, there should be a continuation of the April 8 rally, ideally with an increase in trading volumes. This could catalyze demand, even putting bitcoin above $74,000 and new highs in 2024 ahead of the long-awaited halving event.
Eyes on bitcoin halving: Is a supply squeeze brewing?
As the analyst explains, the “halving” event is a crucial catalyst for this potential increase. Less than bitcoin-halving” target=”_blank” rel=”nofollow”>ten days By far, this event is a protocol-driven event that will see the network reduce block rewards to 3.125 btc, down from the current 6.25 btc.
This reduction, combined with sustained demand, will likely create a shortage of bitcoin, which could drive its price up.
Ahead of the bitcoin halving, the analyst said that the amount of btc held by exchanges is declining. As an example, Coinbase holdings are at their lowest level in six years. However, this is not an isolated event; Data shows that major exchanges like Binance are seeing a decline in supply.
At the same time, over-the-counter (OTC) desks, which handle large private cryptocurrency transactions, are reportedly running out of bitcoin, indicating strong institutional demand. This suggests a possible reduction in supply that will only get worse in the coming months.
Impact of btc Spot ETFs: London and Hong Kong in the Picture
Spot issuers of bitcoin exchange-traded funds (ETFs), the analyst added, are already on a buying spree, gobbling up more than $300 million worth of btc each day. Since these issuers act on behalf of both retail and institutional investors, they are actively injecting capital into the market, providing a huge boost to prices.
It should be noted that the increase from Q4 2023 to early January was primarily due to early spot bitcoin ETFs. The spillover effect and billions flowing into the asset make btc more liquid and resilient against aggressive sellers.
Additionally, the London Stock Exchange plans to list bitcoin-backed exchange-traded notes (ETNs) in the second quarter of 2024. Like spot ETFs in the United States, this product will inject liquidity into the market and legitimize the currency as a valuable asset class. similar to gold.
In Asia, Hong Kong's Securities and Futures Commission (SFC) will likely approve multiple spot bitcoin ETFs. Some of the notable applicants include major Chinese asset managers.
Featured image of DALLE, TradingView chart
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
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