 ▲ Bitcoin (BTC) ©Coin Leaders |
It is predicted that the price of Bitcoin (BTC) will likely hit an all-time high this year, thanks to the effects of the halving and the launch of the Ethereum (ETH) spot exchange-traded fund (ETF).
CNBC reported that cryptocurrency data provider CCData analyzed in a report published on the 2nd (local time) that the Bitcoin price has not yet reached the peak of this upward cycle.
The price of Bitcoin set a record above $73,700 last March, but has come down and is now trading around $60,000.
However, CC Data believes that the upward period after this halving (completed on April 19) is not yet over.
According to the report, the price of Bitcoin showed a pattern of setting a new record after the past halving and then falling, leading to a 'virtual currency winter'.
It rose for 366 to 548 days after three halvings in 2012, 2016, and 2020.
As the virtual currency market matured and volatility decreased, the post-halving rising period became longer.
Bitcoin halving is a halving of supply and mining rewards and is considered a factor in rising prices.
This year, thanks to the launch of the Bitcoin spot ETF in January, the peak was reached before the halving, showing a different pattern than usual.
CC Data said, "However, looking at past trends, the current price sideways trend is judged to be temporary, and it is highly likely that the price will surpass the highest price again within the year."
CC Data added, “It is expected that more liquidity will be supplied to virtual currencies with the launch of the Ethereum ETF.”
Bloomberg News reported on the 3rd that there is speculation that the Ethereum spot ETF will receive approval from the U.S. Securities and Exchange Commission (SEC) as early as mid-month.
Sources said that the Securities and Exchange Commission told institutions that applied for approval to submit updated data by the 8th.
In addition, Thomas Perfumo, head of strategy at cryptocurrency exchange Kraken, said, "Historically, the price of Bitcoin reached its peak 12 to 18 months after the halving, and 10 to 20 new records were broken within 30 days from the peak of the cycle." “The signals are not coming out yet,” he said, according to CNBC.
Prior to this, analysts at investment company Bernstein predicted in the middle of last month that the price of Bitcoin would rise to $200,000 next year and $500,000 by 2029.
They predicted that the supply of Bitcoin would decrease due to halving and that institutional buying power through Bitcoin ETF would increase significantly.
