Bitcoin
BTC
XRP
The bitcoin price has rocketed over $30,000 per bitcoin, adding 10% during the last week and boosting the price of etheruem, XRP and other major cryptocurrencies as the U.S. dollar teeters on the verge of “collapse”.
Now, analysts with Wall Street giant Morgan Stanley
MS
Bitcoin’s historical halving that’s expected to cause crypto price chaos is just around the corner! Sign up now for the free CryptoCodex—A daily newsletter for traders, investors and the crypto-curious that will keep you ahead of the market
The bitcoin price has almost doubled over the last year despite a U.S. crypto crackdown that’s … [+]
“Based on current data, signs indicate that crypto winter may be in the past and that crypto spring is likely on the horizon,” wrote Denny Galindo, author of the Morgan Stanley Wealth Management report, pointing to the massive bitcoin price rally this year that’s seen bitcoin almost double through 2023.
“A 50% increase in price from bitcoin’s low is typically a good sign that the trough has been achieved,” Galindo wrote, noting that previous price troughs were about 83% off their respective highs. The bitcoin price had last year fallen almost 80% from its peak of nearly $70,000 per bitcoin.
Looking ahead, Galindo wrote that usually the “bull-run period starts with the halving event and ends once the price of bitcoin hits its prior peak.” The next bitcoin price halving, that will see the supply of new bitcoin coming onto the market cut by half, is scheduled for April next year.
“By intentionally limiting the supply of new bitcoin, the shortage caused by the halving can affect the price of bitcoin to potentially spur a bull run,” Galindo wrote. “[There have been] three such runs on bitcoin since its inception, each lasting 12 to 18 months after the halving.”
Sign up now for CryptoCodex—A free, daily newsletter for the crypto-curious
The bitcoin price has recovered somewhat this year but remains far from its late 2021 peak of almost … [+]
Other bitcoin, ethereum, XRP and crypto market watchers have also pointed to bitcoin’s looming halving and its price “momentum” as fueling this latest rally.
“Recent data on price and volume underscores bitcoin’s strong momentum in contrast to the broader digital asset market,” Matteo Greco, a research analyst at crypto investor Fineqia, wrote in an emailed note. Bitcoin’s crypto market dominance—a measure of the bitcoin’s weight in the market compared to other cryptocurrencies—has increased to its highest level in years this month.
The bitcoin price has been boosted this month by soaring expectations a long-awaited bitcoin spot exchange-traded fund (ETF) could be approved by U.S. regulators.
“Over the past month, the growing investor confidence in the imminent approval of bitcoin spot ETFs has driven considerable momentum toward bitcoin,” Greco said. “This, combined with the scheduled bitcoin halving in the latter part of April 2024—a historic milestone event for the bitcoin network—has prompted investors to favour bitcoin over other digital assets.
