Bitcoin’s 4-year halving cycles are widely associated with the subsequent crypto market bull runs that generally lead to new Bitcoin all-time highs. But is the much-awaited halving the right time to invest in the world’s largest cryptocurrency?
Based on historical Bitcoin price data, the halvings could be a great time to buy for investors with longer time horizons, according to Vetle Lunde, a senior analyst at K33 Research. Lunde told Cointelegraph:
Bitcoin breached the $60,000 mark for the first time in over two years on Feb. 28, 47 days before the halving, and the world’s first cryptocurrency is up 30% over the past week.
The Bitcoin halving halves the rate at which new BTC are issued into circulation every four years. The network will stop producing new Bitcoin once 21 million coins are created by the year 2140, which will be the year of the last Bitcoin halving.
According to Bryan Legend, investor and CEO of Hectic Labs, the pre-halving period can be a profitable time to hold Bitcoin. He told Cointelegraph:
Bitcoin’s pre-halving rally to the $67,611 mark was largely assisted by record inflows in the 10 new spot Bitcoin exchange-traded funds (ETFs) in the United States.
According to the report, Bitcoin accounted for “94% of the inflows” at $1.72 billion, as U. S.-based funds continued to dominate with net inflows totaling $1.88 billion.
Sergei Gorev, a risk manager at fintech platform YouHodler, said that Bitcoin ETF inflows are a significant part of the current rally, along with the pre-halving anticipation. He told Cointelegraph:
Bitcoin price typically rallies into the halving but sees a consolidation immediately after the halving, according to K33 Research’s Lunde. He said:
However, Lunde only expects a brief correction, before Bitcoin resumes its price rally to new all-time highs.
Bitcoin’s end-of-year price could reach around $80,000 to $85,000 in the worst case and $120,000 to $130,000 in the bullish case, according to Hectic Labs’ CEO, Bryan Legend. He told Cointelegraph that this will mainly depend on macroeconomic conditions:
Related: US gov’t moved $922 million of seized Bitcoin after BTC price broke $60,000
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.