Bitcoin’s price has seen a 13% drop in the past 48 hours, falling from its all-time high of $73,835 to briefly trade near $60,000. Analysts attribute this correction to the overheated market conditions leading up to the Bitcoin halving event, which is about a month away. However, a report by CryptoQuant suggests that the Bitcoin bull cycle is not over yet. The report reveals that only 48% of Bitcoin investment is coming from short-term holders, whereas in previous bull cycles, new investors accounted for 84%-92% of investment. This indicates that there is still room for growth in the market. Additionally, valuation metrics are still below levels seen in past market tops, further supporting the idea that the bull cycle is not yet complete.
The upcoming Bitcoin halving event is also expected to drive up BTC price. With less than 31 days to go, the halving event will reduce miner block rewards by 50%. Historically, Bitcoin’s supply halving has always preceded a significant bull run in the market, leading to an increase in BTC price.
Standard Chartered Bank has even raised its forecast for BTC price, predicting that it will reach $150,000 in 2024 and $250,000 in 2025. While this prediction is not solely based on the halving event, it takes into account the impressive performance of spot Bitcoin ETFs since they began trading in January.
It’s important to note that this article does not provide investment advice. Readers should conduct their own research and make informed decisions when investing or trading.