Bitcoin’s next halving event, set to take place in April 2024, could see the cryptocurrency’s price skyrocket to $148,000, according to Pantera Capital, the fifth-largest crypto hedge fund by AUM.The firm’s “Blockchain Letter” analyzed BTC’s past halving events and their subsequent impact on its price. It noted that the longest period of negative year-over-year returns in Bitcoin’s history lasted 15 months, and that the longest period prior was just under a year.Pantera believes that recent positive developments in the crypto space, such as the XRP ruling and endorsements by BlackRock et al., combined with the upcoming Bitcoin halving, create a potent mix for a potential bull market for digital assets.The halving event is a pre-programmed reduction in the BTC block reward for miners, and is set to continue until 2140, ensuring that only 21 million Bitcoins will ever exist.Pantera’s analysis suggests that even though the Efficient Markets Theory posits that such a well-known event should already be priced in, history paints a different picture. They believe that Bitcoin should have troughed on December 30, 2022, and that the actual low was observed on November 9th, 2022.The upcoming halving will see the mining reward drop from 6.25 BTC to 3.125 BTC per block. Pantera’s analysis suggests that Bitcoin has historically bottomed 477 days prior to the halving, climbed leading into it, and then exploded to the upside afterwards. They predict that the new cycle high will come 480 days after the halving, in July 2025.Using their stock-to-flow price projection model, Pantera concludes that if history were to repeat itself, the next halving would see Bitcoin rising to $35k before the halving and $148k after. This projection aligns with other bullish forecasts in the Bitcoin space.
| Information |
Details |
| Geography |
Global |
| Countries |
|
| Sentiment |
positive |
| Relevance Score |
10 |
| People |
Satoshi Nakamoto, Tom Lee, Pantera Capital |
| Companies |
Pantera Capital, XRP, BlackRock, Satoshi Nakamoto, Fundstrat |
| Currencies |
Bitcoin, Ethereum |
| Securities |
None |
