With only a month remaining until the Bitcoin halving, the price of BTC has experienced a retracement despite recent capital inflows that led to a new all-time high earlier this month. However, industry experts are not concerned about the retracement and remain largely bullish on Bitcoin’s future.
Bitcoin has seen significant price growth in 2024, reaching a price of $73,737 on March 14 after starting the year at $42,208. Although the price has retraced in the countdown to the halving, experts believe that Bitcoin will surpass its all-time high soon.
Samson Mow, CEO of Jan3, predicts that Bitcoin will reach $100,000 before the halving due to the high demand from exchange-traded funds (ETFs). He believes that there are not enough coins to meet the demand from ETFs, which consume around 7,000 coins a day.
While Mow predicts a price rise, others suggest that there could be a deeper dip in the price. Ran Neuner, for example, believes that a 20-30% dip would be normal and healthy during a bull market. Danny Chong of Tranchess also suggests that there may be a temporary downturn after the halving but expects the overall market sentiment to remain bullish.
Despite the possibility of a dip, industry observers believe that the long-term direction for Bitcoin is upward. They argue that institutional investors will provide strong support for Bitcoin’s price during potential retracements. The involvement of institutional investors and the anticipation of interest rate cuts by the US Federal Reserve contribute to the positive case for Bitcoin.
Zac Cheah, CEO of Pundi X, notes that the 2024 halving is unique because Bitcoin’s floor price enjoys robust support from institutional investors. He predicts a potential surge to as high as $100,000 during the halving cycle.
When asked about the relationship between Bitcoin and the broader crypto market, Mow believes that Bitcoin will decouple from other cryptocurrencies due to the massive inflows from ETFs. He argues that while other cryptocurrencies may track Bitcoin for a while, they will eventually lose steam and be left behind.
In conclusion, with the Bitcoin halving approaching, experts remain optimistic about the future of Bitcoin despite the recent retracement in price. They predict that Bitcoin will surpass its all-time high and potentially reach $100,000, supported by institutional investors and favorable market conditions. However, the relationship between Bitcoin and other cryptocurrencies may change as Bitcoin gains more institutional support.