With just 10 days remaining until the highly anticipated halving event, Bitcoin continues to trade above the psychologically important $70,000 level, further strengthening the optimistic long-term price forecasts from market analysts.
According to a research report by analysts from Bitfinex, Bitcoin’s price could potentially surge by more than 160% after the halving, reaching a peak of over $150,000. This prediction has been shared with Cointelegraph.
In the 24 hours leading up to 11:50 am UTC, Bitcoin experienced a 2.2% decrease in price, trading at $70,694. However, on a weekly chart, the world’s first cryptocurrency has shown a growth of over 7.5%, as reported by CoinMarketCap data.
It is important to note, however, that the analysts have observed a greater level of selling pressure compared to previous cycles due to Bitcoin reaching a new all-time high before the halving event, which is a historical first for the crypto market. This could lead to significant selling pressure, as 1.87 million BTC (equivalent to 9.5% of the circulating supply) was purchased above the $60,000 mark.
Furthermore, the analysts have also highlighted that Bitcoin prices could potentially face a sharp decline during the halving period due to the Federal Reserve’s quantitative tightening measures, which involve the removal of liquidity from the markets. Arthur Hayes, the co-founder of BitMEX, discussed this in a blog post on April 8.
The inflow of funds from Bitcoin exchange-traded funds (ETFs) in the United States has played a significant role in the recent price rally of Bitcoin. According to research by CryptoQuant, by February 15, Bitcoin ETFs accounted for approximately 75% of new investments in the cryptocurrency when it surpassed the $50,000 mark.
Since their launch, Bitcoin ETFs have accumulated over 841,900 BTC, valued at $59.2 billion, which represents 4.28% of the total circulating supply of Bitcoin. Dune predicts that with the current accumulation pattern, Bitcoin ETFs are expected to absorb 2.6% of the Bitcoin supply annually.
Last week alone, Bitcoin ETFs saw net inflows of over $500 million, with a daily net inflow of $286 million on April 8, as reported by Dune data.
As the halving event approaches, it is important to consider that the profitability of Bitcoin mining may not necessarily decrease.