Bitcoin (BTC) experienced a brief dip below $60,000, causing concern among investors as the halving event approaches. Bulls are optimistic that BTC will rebound and reach $80,000. Just two days before the fourth Bitcoin halving, BTC dropped below $60,000, a key support level. However, the cryptocurrency quickly recovered and is now trading above $62,000.
The Bitcoin halving, scheduled for April 20th, is a significant event for the network and the community. It will reduce the reward given to miners from 6.25 to 3.125 BTC, effectively controlling the supply of Bitcoin. This scarcity makes Bitcoin more valuable and combats inflation, similar to precious metals. While miners receive fewer coins, the remaining coins could potentially increase in value.
Miners are heavily impacted by the halving event, forcing them to become more efficient or cease operations altogether. The profitability of mining directly affects Bitcoin’s price, and the halving always has a significant impact on the industry and the asset’s price.
BTC reached an all-time high of nearly $74,000 earlier this year, largely due to institutional adoption. Many investors bought Bitcoin in anticipation of a record rally following the halving. Historically, BTC has set new all-time highs in the months after halving events. With the upcoming halving and the recent introduction of a Bitcoin ETF attracting a new wave of investors, experts predict that the digital asset could reach $100,000 by the end of the year.
Currently, BTC is trading at $62,707 after a 1.7% increase in the last 24 hours. However, the coin still remains in the red with a 10% dip in the last 7 days. Despite the struggles in price leading up to the halving, experts believe that a supply shock will occur, driving prices higher in the coming days and weeks.
It is worth noting that Bitcoin’s price gains have decreased with each halving event. In the last three cycles, the price multiplied by 93x, 30x, and 8x. If this trend continues, the next rally may be less than 8x, but still significant for investors. Additionally, the popularity of BTC is at an all-time high, particularly after the launch of a BTC spot ETF earlier this year. This has attracted institutional investors who have the potential to push prices even higher.
Crypto analyst Julio Moreno speculates that the drop in Bitcoin’s price may be slowing down, as traders have fewer profits to take, reducing selling pressure. This indicates that selling pressure from traders may be declining, as the unrealized profit margins are almost zero.
In summary, Bitcoin’s dip below $60,000 has caused concern among investors, but many remain optimistic about a rebound and a potential price of $80,000. The upcoming halving event is expected to have a significant impact on Bitcoin’s price, and experts predict that it could reach $100,000 by the end of the year. Despite recent struggles, Bitcoin’s popularity remains high, with institutional investors entering the market.