🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Bitcoin: Here's Real Catalyst for BTC's Potential 6,000% Rise — Analyst

Published 01/07/2024, 09:58 AM
Updated 01/07/2024, 10:00 AM
© Reuters.  Bitcoin: Here's Real Catalyst for BTC's Potential 6,000% Rise — Analyst
BTC/USD
-

U.Today - Crypto investors are eagerly anticipating a decision from the United States Securities and Exchange Commission (SEC) that will likely approve the trading of a -traded fund, more than a decade after initial attempts were rejected.

Pending approval, 13 companies are expected to offer ETFs, including BlackRock (NYSE:BLK), the world's largest asset management firm.

Bitcoin's price grew significantly for most of 2023, spurred by optimism surrounding the spot ETF approval, and it now trades at about $43,622.

On the contrary, Bitcoin's price has always declined in response to pessimistic reports concerning the approval of a Bitcoin spot ETF. The most recent being on Jan. 3, when rumors of Bitcoin spot ETF rejection spooked the markets, and Bitcoin fell roughly 8%.

As the crypto market eagerly awaits the SEC decision in the coming week, two possibilities are presented: the SEC might decide to approve or deny.

states that regardless of what happens with the Bitcoin ETF, another bullish catalyst lies in wait this year, which is the Bitcoin halving. This bullish event, according to Ali, has historically been a catalyst for major price surges.

To back up this assertion, Ali posted a graph indicating BTC's price performance 365 days after past halvings.

The first halving event, which saw BTC mining rewards slashed to 25 BTC, saw the Bitcoin price jump more than 6,000%, per the chart posted by Ali.

Meanwhile, Bitcoin saw an average yearly return profile of over 400% in subsequent halving events in 2016 and 2020. While the price of Bitcoin tends to skyrocket in the months after the halving, it is important to remember that past performance does not predict future results.

Bitcoin halving expected date

While the next is expected for block height 840,000, the actual day and hour are subject to change due to the natural fluctuation and probabilistic nature of mining blocks. Based on the current average block interval, Glassnode predicts a likely date of April 23, 2024.

Bitcoin miners currently receive 6.25 Bitcoins for each successfully mined block. This reward will be halved to 3.125 Bitcoin when the next Bitcoin halving happens.

This article was originally published on U.Today

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.