Bitcoin’s halving events, which occur every four years, are often associated with bull runs in the crypto market that lead to new all-time highs for the cryptocurrency. However, is the halving really the best time to invest in Bitcoin?
Vetle Lunde, a senior analyst at K33 Research, suggests that the halvings could be a favorable time to buy for investors with longer time horizons. Looking at historical Bitcoin price data, Lunde believes that the pre-halving period can be profitable for holding Bitcoin.
In fact, Bitcoin recently surpassed the $60,000 mark for the first time in over two years, 47 days before the upcoming halving. Over the past week, the cryptocurrency has seen a 30% increase in value.
The halving event cuts the rate at which new Bitcoin is issued into circulation in half every four years. Eventually, by the year 2140, the network will stop producing new Bitcoin once 21 million coins have been created.
Bryan Legend, CEO of Hectic Labs and an investor, also believes that the pre-halving period can be a lucrative time to hold Bitcoin. He points out that the recent rally to the $67,611 mark was largely driven by record inflows into 10 new spot Bitcoin exchange-traded funds (ETFs) in the United States. Bitcoin accounted for a significant portion of these inflows, with U.S.-based funds dominating the market.
Sergei Gorev, a risk manager at fintech platform YouHodler, agrees that the current rally is influenced by Bitcoin ETF inflows and the anticipation of the halving. He suggests that these factors contribute to the overall market sentiment.
While Bitcoin typically experiences a rally leading up to the halving, it often sees a period of consolidation immediately after the event, according to Lunde. However, he believes that any correction will be brief, and Bitcoin will continue its upward trajectory towards new all-time highs.
Looking ahead, Bryan Legend predicts that Bitcoin’s end-of-year price could range from $80,000 to $85,000 in the worst-case scenario and $120,000 to $130,000 in the bullish case. He emphasizes that these projections depend heavily on macroeconomic conditions.
It’s important to note that this article does not offer investment advice or recommendations. Investing in Bitcoin or any other asset involves risk, and readers are encouraged to conduct their own research before making any decisions.