Another bitcoin halving — the event that lowers rewards for miners, thus tightening supply of the flagship cryptocurrency — is coming in six months.
There are instances of halvings boosting bitcoin prices, but it’s not a guarantee. This time around, there’s much division among cryptomarket observers regarding whether or not the 2024 event will be a catalyst for bitcoin prices.
However, one noted crypto expert – the X (formerly Twitter) account known as BitQuant — believes the upcoming halving could be a major upside catalyst for bitcoin prices. If that predication proves accurate, exchange traded funds such as the Invesco Alerian Galaxy Crypto Economy ETF (SATO) and the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC) could benefit.
“No, bitcoin is not going to top before the halving. Yes, it’s going to reach a new all-time high before the halving,” according to a recent BitQuant xeet. “No BTC is not going to $160K because the magnitude of every pullback is large.”
Potential Benefits Abound for Bitcoin Funds BLKC, SATO
Bitcoin’s all-time high is around $69,000, meaning it’d need to more than double from current levels to get back to that price range. Alone, that would likely propel BLKC and SATO due to the fact that both ETFs are chock full of crypto-correlated equities.
Additionally, BitQuant isn’t saying bitcoin can’t make it to $160,000. Rather, the expert acknowledges that there could be another significant retreat when prior highs come into play and another pullback if the $125,000 price range becomes a factor.
“There will be one pullback before breaking to a new all-time high, followed by another pullback around $125K. Additionally, there will be two more pullbacks after the halving,” added the expert in another xeet.
BitQuant added that bitcoin’s price could peak after the 2024 halving, which implies that the digital currency will experience a rally in advance of and after that event. The market observer’s price forecast is $250,000, or more than nine times where it currently resides.
That’s an ambitious projection to be sure, and one that would almost assuredly benefit assets such as BLKC and SATO. It also jibes with the forecasts of other cryptomarket specialists who believe that the mid-$30,000s or even low $40,000s are reasonable expectations for a year-end price in 2023 before bitcoin ascends to six-figure territory around next year’s halving.
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