With only a mere 10 days remaining until the highly anticipated halving event, Bitcoin continues to trade above the psychologically significant level of $70,000, which is strengthening the bullish long-term price predictions made by market analysts.
According to a research report shared with Cointelegraph by Bitfinex analysts, it is projected that following the halving, the price of Bitcoin (BTC) could surge by over 160%, reaching a cycle peak of more than $150,000.
In the 24 hours leading up to 11:50 am UTC, Bitcoin experienced a 2.2% decline in price, settling at $70,694. However, when examining the weekly chart, it is evident that the world’s first cryptocurrency has achieved a growth of over 7.5%, according to data from CoinMarketCap.
Despite these positive indicators, the analysts have identified an increase in selling pressure compared to previous cycles. This is attributed to Bitcoin hitting a new all-time high before the halving, a milestone that has never been reached in the history of cryptocurrency. As a result, 1.87 million BTC, equivalent to 9.5% of the circulating supply, was purchased above the $60,000 mark. The analysts commented on this development:
“However, Bitcoin prices may experience a significant decline during the halving period due to the Federal Reserve’s quantitative tightening, which is reducing liquidity in the markets,” stated Arthur Hayes, the co-founder of BitMEX, in a blog post on April 8.
In relation to this, the inflows from United States-based Bitcoin exchange-traded funds (ETFs) have played a crucial role in driving up the price of Bitcoin. According to research conducted by CryptoQuant, by February 15, Bitcoin ETFs accounted for approximately 75% of new investments in the largest cryptocurrency in the world as it surpassed the $50,000 mark. Since their launch, Bitcoin ETFs have accumulated over 841,900 BTC, valued at $59.2 billion, which represents 4.28% of the total circulating supply of Bitcoin.
Based on the accumulation pattern observed over the past two weeks, Dune predicts that Bitcoin ETFs will absorb 2.6% of the Bitcoin supply annually.
Last week alone, Bitcoin ETFs received net inflows worth over $500 million, with a total of $286 million in daily net inflows recorded on April 8, the first trading day of the week, according to data from Dune.
In conclusion, with the halving event fast approaching, the profitability of Bitcoin mining is not guaranteed to decrease.