Warren Buffett, a renowned investor, reportedly remarked, “Be greedy when others are scared and fearful when others are greedy.” The battered bitcoin (BTC) could soon find relief and rally to $63,000 by March 2024, when the cryptocurrency is likely to undergo mining reward halving, a programmed code designed to slow the rate of supply expansion by 50% every four years. Perhaps now is the time to be greedy in the cryptocurrency market
According to historical statistics, Bitcoin often reaches its bottom and begins to rise 15 months before the halving
Markus Thielen, head of research and strategy at crypto services provider Matrixport, which has $10 billion in assets under management, made that most recent prediction. The optimistic forecast is predicated on the idea that bitcoin’s price would continue to rise, as it did in the months before the July 2016 and April 2020 halvings. On both times, bitcoin saw favorable trends 15 months before the halves and traded 39% higher than it did two years prior to the halving.
Accordingly, if the past is any indication, bitcoin’s fortunes may begin to turn starting next month and soar to $63,160 by March 2024, when it will trade 39% higher than the March 2022 price of $45,538. “Prices began to rise 15 months before the subsequent halving (in November 2022), and they typically conclude 39% higher than where they began. This would suggest that by March 2024, bitcoin will price at about $63,160 (March 2022 at $45,538*(1+39%) = $63,160), ” The newest Matrix on Target note was written by Thielen.
If the past is any indication, bitcoin may experience positive winds starting next month. Technology Matrixport Technology Matrixport Future outcomes cannot be predicted based on past performance. Nevertheless, history frequently repeats itself, and the long-term prognosis may improve soon. Recent comments from Federal Reserve officials suggested that the rate of tightening from December might be slower.
In addition, Thielen claims there are indications that China is relaxing her stance on cryptocurrencies. “The timing of Hong Kong potentially permitting retail crypto trading to establish itself as a crypto hub soon after China’s Party Congress, which only takes place twice every ten years, suggests that China is shifting its stance towards crypto,” Thielen added. “As a result of the economic sanctions, Russia has also modified its position. China and President [Vladimir] Putin are looking for a mechanism to replace the USD. A new multi-year crypto bull market may be beginning, along with Saudi Arabia, which aspires to join the BRICs and is keen to upgrade its economy to Web 3 “Thielen tacked on.
Three reward halvings have taken place for bitcoin thus far. Following the third halving on May 12, 2020, prices surged from $8,800 to $69,000 in just 18 months. The initial plan was for the fourth halving to occur in May 2024. The reward halving is now anticipated to occur in March 2024 due to the rise in hashrate, or the amount of processing power committed to mining blocks during the bad market. The per-block reward provided to miners will decrease from 6.25 BTC to 3.12 BTC following the event, lowering the inflation rate of the cryptocurrency to 1.1%. Blocks are mined and transactions are verified by bitcoin miners in exchange for payments made in BTC.
In contrast to the ever-growing fiat money supply, the cryptocurrency’s set monetary policy of halving supply expansion every four years. Many people, notably business intelligence company MicroStrategy, have been inspired by this to use bitcoin as a reserve asset.