With Bitcoin rising higher and approaching all-time highs, an X analyst believes the $150,000 post-halving is “timed.” The analyst remains bullish in a post highlighting several fundamental developments that could push the world’s most valuable currency to a new valuation and more than 2X spot rates.
Currently, the path of least resistance remains north. Buyers shook off the bears from the last month of trading, finding anchor at the March 20 bull bar.
On April 8, the coin soared above the key settlement level at around $71,800. Bitcoin has since cooled off, but the upside remains and could form the basis for another breakout above $74,000.
For the bulls to be firmly in control and align with the analyst outlook, there should be a continuation of the April 8 rally, ideally with increasing trading volumes. This could catalyze demand, even putting Bitcoin above $74,000 and new 2024 highs before the long-awaited halving event.
Eyeing Bitcoin Halving: A Supply Squeeze in the Works?
As the analyst explains, the “Halving” event is a crucial catalyst for this potential increase. Less than ten days By far, this event is a protocol-driven occurrence that will see the network reduce block rewards to 3.125 BTC, down from the current 6.25 BTC.
This reduction, combined with sustained demand, will likely create a shortage of Bitcoin, potentially driving up its price.
Before the Bitcoin halving, the analyst said that the amount of BTC held by exchanges is decreasing. To illustrate, Coinbase holdings are at a six-year low. However, this is not an isolated event; data shows that large exchanges like Binance are seeing decreasing supply.
At the same time, over-the-counter (OTC) desks, which handle large private cryptocurrency transactions, are reportedly low on Bitcoin, indicating strong institutional demand. This suggests that a potential supply squeeze is only likely to worsen in the coming months.
Impact of Spot BTC ETFs: London and Hong Kong in the picture
Bitcoin exchange-traded fund (ETF) issuers, the analyst added, are already on a buying spree, gobbling up more than $300 million worth of BTC every day. Because these issuers act on behalf of investors, both retail and institutional, they are actively injecting capital into the market, which represents a huge boost to prices.
It should be noted that the increase from Q4 2023 to early January was mainly due to anticipated spot Bitcoin ETFs. The knock-on effect and billions flowing into the asset make BTC more liquid and resilient against aggressive sellers.
Additionally, the London Stock Exchange plans to list Bitcoin-backed exchange-traded notes (ETNs) in the second quarter of 2024. Just like spot ETFs in the United States, this product will inject liquidity into the market and legitimize the currency as a class worthy asset, similar to gold.
In Asia, the Securities and Futures Commission (SFC) of Hong Kong will likely approve several Bitcoin ETFs in cash. Some of the noteworthy candidates include top Chinese asset managers.
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