Prominent Analytics Firm Predicts Bitcoin Could Reach New All-Time Highs in Six Months
Analytics firm IntoTheBlock has forecasted an 85% chance that Bitcoin (BTC) will hit a fresh all-time high within the next six months. This prediction is based on five key catalysts that could potentially propel the leading cryptocurrency to record highs.
Bitcoin Halving
The first catalyst is the highly anticipated Bitcoin halving in April. The halving will cut BTC miner rewards in half, and according to IntoTheBlock, miners are well-prepared for this event. The reduction in BTC issuance and decreased selling pressure post-halving could contribute to another all-time high just a month after the event.
Bitcoin ETFs
Fresh inflows from recently approved Bitcoin exchange-traded funds (ETFs) could also drive BTC to new highs. These ETFs have already accumulated around $4 billion in new inflows within a month of their launch. The growing demand for Bitcoin combined with decreased supply issuance post-halving could create an explosive dynamic for its price.
Anticipated Interest Rate Cuts
The anticipation of interest rate cuts by the Federal Reserve is another potential tailwind for Bitcoin. Traders are already pricing in the forecasted rate cuts, which could lead to cheaper borrowing and increased liquidity in financial markets. This liquidity could benefit both Bitcoin and stocks.
US Presidential Election
The upcoming US presidential election is also identified as a catalyst for Bitcoin’s potential price increase. The researcher suggests that the Fed may take steps to prop up the economy ahead of the event to increase the chances of re-election for President Biden.
Global Accumulation of BTC
The final catalyst is the prediction that companies worldwide will accumulate Bitcoin in the coming months. With the accessibility of spot ETFs, more hedge funds are expected to invest in Bitcoin. Additionally, an increasing number of companies in Asia and South America have already adopted Bitcoin for their treasuries, and this trend may expand nationally.
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