Analyst: Bitcoin will soar to $160,000 after halving in 2024

Author: Shaurya Malwa, coindesk Translation: Shan Oppa, Golden Finance

Historically, Bitcoin has rallied after halving events (which automatically reduce the supply of new tokens on the open market), and traders may be tempted to look at the next Pricing is scheduled for an April 2024 event.

A series of catalysts and historical trends could push Bitcoin (BTC) to $160,000, with analysts widely predicting a bull run in 2024 Expand.

Blockchain analytics firm CryptoQuant said in a report shared with CoinDesk on Wednesday that expected Bitcoin from multiple U.S. spot exchange-traded funds (ETFs) Coin demand, the upcoming halving (which cuts Bitcoin output in half every four years) and the growth of the broader stock market amid loose interest rate policies could push Bitcoin prices to at least $50,000 in the short term.

CryptoQuant analysts said: “We believe that the Bitcoin and cryptocurrency markets are likely to be positive in 2024, mainly affected by the following factors: 1. Market Valuation cycles, 2. Network activity, 3. Bitcoin halving, 4. Macroeconomic views, 5. Bitcoin spot ETF approval, and 6. Stablecoin liquidity growth.”

"Both on-chain valuations and network indicators indicate that Bitcoin is still in a bull cycle, with a mid-term target of $54,000 and a peak of $160,000 this round," the analyst said.

Bitcoin tends to see price spikes after its halving event—an event that automatically reduces the supply of new coins on the market—and traders may Preparations are already underway for the next halving, which is expected to occur in April 2024.

At the same time, seven traditional financial giants, including BlackRock (BLK) and VanEck, are fighting with the U.S. Securities and Exchange Commission (SEC) over spot Bitcoin. Bitcoin ETF Negotiations – This back-and-forth could mean negotiations are actively underway.

Some prominent Bitcoin holders said the development could be one of the most important events on Wall Street in "30 years."

Michael Saylor said in an interview with CNBC on Tuesday: "It is not an exaggeration to assert that this may be the most important development on Wall Street in 30 years. ." He hinted that the last product similar to this was the S&P 500 ETF, which gave investors one-click exposure to the popular index. Saylor’s business software company MicroStrategy is the world’s largest public holder of Bitcoin, with more than $8 billion in Bitcoin in its vault.

Traders also expect the Federal Reserve to cut interest rates in 2024 as inflation continues to decline - lower rates have historically been a boon for tech stocks and large-scale bets on risky assets such as cryptocurrencies.

However, CryptoQuant warned in its report that prices are still likely to decline in the short term due to the large unrealized gains held by investors recently.

The analyst said: "Considering that short-term Bitcoin holders currently have high unrealized profits, this situation has historically tended to trigger price corrections. , so there is a certain risk of price correction."