© Reuters. Bitcoin: Here is the real catalyst for BTC’s potential 6000% surge – Analyst
U.Today – Cryptocurrency investors are anxiously awaiting a decision from the United States Securities and Exchange Commission (SEC) that will likely approve trading of an exchange-traded fund, more than a decade after initial attempts were rejected.
Pending approval, 13 companies are expected to offer ETFs, including BlackRock (NYSE 🙂, the world’s largest asset management firm.
The price rose significantly throughout most of 2023, driven by optimism surrounding the approval of the spot ETF, and is now trading at around $43,622.
On the contrary, the price of Bitcoin has always declined in response to pessimistic reports regarding the approval of a Bitcoin spot ETF. The most recent was on January 3, when rumors about the rejection of the Bitcoin spot ETF spooked the markets, and Bitcoin fell approximately 8%.
As the cryptocurrency market anxiously awaits the SEC’s decision next week, two possibilities present themselves: the SEC could decide to approve or reject it.
states that regardless of what happens with the Bitcoin ETF, another bullish catalyst awaits us this year, which is the Bitcoin halving. This bullish event, according to Ali, has historically been a catalyst for significant price increases.
To support this claim, Ali published a chart indicating the price performance of BTC 365 days after the latest halvings.
The first halving event, in which BTC mining rewards were reduced to 25 BTC, caused the price of Bitcoin to rise more than 6,000%, according to the chart posted by Ali.
Meanwhile, Bitcoin experienced an average annual return profile of over 400% in subsequent halving events in 2016 and 2020. While Bitcoin’s price tends to skyrocket in the months following the halving, it is It is important to remember that past performance does not predict future results. .
Expected date for Bitcoin halving
While the next one is expected to have a block height of 840,000, the actual day and time is subject to change due to natural fluctuation and the probabilistic nature of mining blocks. Based on the current average block interval, Glassnode predicts a likely date of April 23, 2024.
Bitcoin miners currently receive 6.25 Bitcoins for each successfully mined block. This reward will be halved to 3,125 Bitcoin when the next Bitcoin halving occurs.
This article was originally published on U.Today.
