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Bitcoin has hit another all-time high this week, with analysts and investors speculating when this recent price increase will peak.
The world's leading cryptocurrency has risen more than 70 percent since January 1, topping $70,000 for the first time in its 15-year history. That builds on last year's more than 150% rally, from below $17,000 in early 2023.
The price surge has been fueled by a new wave of institutional investors brought in after the U.S. Securities and Exchange Commission approved the first-ever Bitcoin spot exchange-traded fund (ETF).
More important, according to some crypto market analysts, is an upcoming event known as the “halving,” when the rewards for mining cryptocurrencies will be halved.
Scheduled to take place on April 19th, previous halving events have historically preceded the record rally. This decline in supply, which occurs approximately every four years, is believed by some to be the basis for Bitcoin's four-year price cycle.
One of the most notable price prediction models that uses the halving cycle as a basis is the Stock-to-Flow (S2F) model created by a Dutch analyst under the pseudonym PlanB.
The apparent accuracy of the S2F model, first unveiled in 2019 ahead of the last gathering, has helped PlanB gain nearly 2 million followers on X (formerly Twitter).
The price crash that followed the 2021 peak caused Bitcoin to briefly fall to the lower bound of the S2F model, but Plan B commented on the latest price movement and the S2F model is “back like clockwork” said.
The upper bound of PlanB's model will push Bitcoin prices well above $100,000 this cycle, which other analysts see as increasingly realistic. Plan B ultimately suggests that due to Bitcoin's inherent scarcity (only 21 million Bitcoins will ever exist), it could rival gold's $14 trillion market capitalization, and its price would rise 10 times its current level. thinking.
Recent price increases mean it is becoming common among crypto market watchers to predict that Bitcoin will break into six-digit territory in 2024. With a 40 percent jump to the milestone, some are wondering how much the cap will actually be.
Lukman Otunuga, senior market analyst at online trading broker FXTM, said: “Looking at the technical situation, the all-time high is just around the corner, and the psychological level of $80,000 could become a resistance level going forward. There is,” he said. The average price prediction across sources was he $123,056.
“It’s uncharted territory from here. The average price prediction for BTC is $123,056, but this would require the cryptocurrency to rise an additional 60% from current levels. The timeline is unknown, but we can see how the price rises. Considering that, it may be possible.”
Alongside these bullish predictions, there has also been speculation about when and how much Bitcoin will fall.
In previous price increases in 2013, 2017, and 2021, Bitcoin suffered dramatic declines from its peaks, dropping 83%, 84%, and 77%, respectively.
“The volatile nature of cryptocurrencies remains, highlighting the speculative aspect of these investments,” said Andrea Barbon, a finance professor at the University of St. Gallen in Switzerland.
“As the landscape evolves with technological innovation and regulatory adjustments, investors are reminded of the balance between potentially high returns and significant risks.”
