As it approaches its fourth halving, Bitcoin, the largest cryptocurrency since its inception in 2009, has been in the news, causing price fluctuations in the cryptocurrency trading industry. The price experienced a 6.86% decline to 62,974.30 USD on March 19, representing a reduction of 6.86% from its peak of $73,798, although this trend is not unprecedented. Nevertheless, as of the present day, March 22, the price has marginally escalated to $65,412.40.
Mark Palmer, a senior equity research analyst at Benchmark, utilized the Yahoo Finance news to address market inquiries and strategize regarding the forthcoming halving, in lieu of these price adjustments.
Mark Palmer, a Wall Street analyst, pointed at historical data to conduct his study, highlighting the notable retracements that Bitcoin has seen during its pre-halving period. There was a substantial decline of 40% in 2016 and a subsequent decline of 20% in 2020. He noted that a 50% reduction in block rewards increases the likelihood of miners leaving the network quickly, leading to a significant supply shock.
Palmer stated that the artificial scarcity caused by the halving will result in an additional price increase in the 18 months following the halving. The future of Bitcoin, after the fourth halving, scheduled for April 2024, could exhibit greater unpredictability due to an assortment of factors. After halving in 2016, Bitcoin experienced an “extended rally,” culminating in a 17-fold increase and a subsequent 6-fold surge in 2020. Unprecedented in the history of bitcoin’s halving, the introduction of the spot ETF has generated a demand jolt for the currency, despite the fact that its price has previously increased substantially.
Palmer further underscored in his interview with Yahoo Finance the unprecedented possibility of a substantial surge in the price of Bitcoin and any equities associated with it. He cited noteworthy accomplishments in the industry, including Microstrategy’s acquisition of 9,245 BTC for $623 million. At this time, Microstrategy holds an estimated 214,246 bitcoins in its possession, which is equivalent to nearly 1% of the 21 million tokens that will be generated in total. According to additional reports, the halving event may cause a substantial increase in the value of Microstrategy’s shares.
Prior to this, it was predicted that the price of Bitcoin would reach $68,705 by March 31, representing a slight 1.07% increase from its present value. Providing an accurate analysis is nearly impossible due to the plethora of other variables that could influence the value of the currency, such as federal regulations and traders attempting to liquidate their current BTC holdings. Palmer remains adamant, however, that Microstrategy would be well positioned should his forecast regarding Bitcoin’s surge to $125,000 by the conclusion of 2025 materialize.