Bitcoin Could Soar to $40K Ahead of Fourth Halving: Good News and Bad News
Two events are generating excitement in the crypto world: the potential approval of a bitcoin exchange-traded fund (ETF) in the U.S. and the upcoming block reward halving. While the halving is expected to have a positive effect on bitcoin’s price, it poses challenges for miners. JPMorgan analysts predict financial difficulties for miners if the price and transaction costs don’t increase.
The Good News:
- Plan B, an anonymous market analyst known for the stock-to-flow (S2F) price model, estimates that bitcoin’s value could reach $40,000 to $50,000 by the halving.
- Plan B used the 200-week moving average to predict future price trends and believes bitcoin will surpass that average, indicating a range of $40,000 to $50,000.
- Matrixport, another forecast, predicts a halving price of $63,160, citing Blackrock’s ETF filing and growing institutional interest.
The Bad News:
- Plan B faced criticism in the past for inaccurate S2F forecasts, but now employs the 200-week moving average for predictions.
- A survey conducted by Plan B shows that 37.9% of respondents don’t expect bitcoin to reach a new all-time low or high before April 2024.
Hot Take
While there are differing opinions on bitcoin’s future price, the possibility of reaching $40,000 to $50,000 is generating excitement. Miners may face challenges, but the overall outlook for bitcoin remains positive. Keep an eye on upcoming developments in the ETF space and institutional interest, as these factors could have a significant impact on bitcoin’s price.
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