- Investors are forecasting a bearish price trajectory for Bitcoin.
- The crypto industry is approaching the anticipated Bitcoin Halving scheduled for the year.
- Market participants have charted a bullish outlook for Bitcoin’s price performance, particularly in light of the ongoing rally.
Bitcoin (BTC) has experienced a remarkable surge over the past two weeks, soaring by more than 21% and claiming a year-high $50,000 price point. The impressive performance has ignited a bullish sentiment among investors, further amplified by the buzz surrounding the upcoming halving event and its potential benefits.
While many bet on Bitcoin to maintain its upward trajectory, others are less enthusiastic, charting a more cautious roadmap for the crypto giant.
Bitcoin Pre-Halving: Bullish or Bearish?
According to Greekslive on Tuesday, February 20, major Bitcoin investors are making bold bets against the expected upward price trajectory of Bitcoin, forecasting an imminent downturn.
One notable transaction involving a butterfly spread valued at $20 million speculated that Bitcoin would experience a price decline before March 29, potentially reaching $47,000.
Greekslive noted that the predictions align with the broader sentiment among whales, who are hedging their bets in the belief that Bitcoin will relinquish its gains and sink below its current $50,000 price level.
This counters the optimistic expectations for Bitcoin to enjoy a lasting price uptick in the pre-halving rally, possibly surpassing its all-time high price of $69,000 given the historic ability of the reward halving to catalyze a significant price appreciation.
When Is the Bitcoin Halving?
Occurring approximately every four years to maintain Bitcoin’s scarcity, this year’s halving event is expected to occur in the early hours (UTC) of April 22, 2024.
While it was originally slated for April 15th due to a faster block generation rate last week, the generation rate in the present week has rendered the date unfeasible.
On February 11, the 830,000th of 840,000 blocks required for the halving was added to the blockchain , bringing the industry only 10,000 blocks away from the anticipated reward-cutting event and heightening anticipation among investors.
Upon activation, this year’s halving will slash Bitcoin’s mining block reward from the current 6.25 BTC rate to 3.125 BTC, reducing the overall token supply.
On the Flipside
- The volatile nature of the crypto market, coupled with ever-evolving market sentiment, makes predicting guaranteed price appreciation post-halving difficult.
- Enthusiastic investors have proposed a “$21-Bitcoin Buy” challenge to drive a potential price surge upon the halving.
- BTC hash rates have recorded new all-time highs , indicating miner confidence ahead of the 2024 halving.
Why This Matters
Like many other events, the bitcoin halving is subject to varying investor perspectives. While some anticipate a lasting uptick in BTC price as the halving nears, others brace for a potential downturn. However, beyond the predictions and the potential effects of the halving, additional factors such as market trends and investor sentiment are crucial, all of which will play a role in determining the price outcome.
Read more about expectations for Bitcoin to maintain a positive trajectory:
Bitcoin Is a “Flight to Safety”: Cathie Wood’s Ark Is All In
Curious about the 200% Worldcoin surge, read here to find out more:
How FTX and 3AC Creditors Benefit from Worldcoin’s 200% Spike
