The chief analyst of Bitget Research, Ryan Lee, analysed the recent increases in Bitcoin. Addressing the importance of the biggest cryptocurrency reaching $50,000 after two years, Lee stated that ETFs have an important part here, but halving is not included in the pricing yet.
“Bitcoin may reach the peak of its price increase in one year and five months”
Explaining the historical details of the halvings in Bitcoin with numbers, Bitget manager said:
“Historically, Bitcoin halvings have resulted in BTC prices reaching new highs. The first halving occurred in November 2012. Within one year, the Bitcoin price rose from $13 to $1152 (in December 2013) and reached its peak one year and one month after the halving. The second halving occurred in July 2016, and the Bitcoin price rose from $664 to $17760 (December 2017), reaching a new peak one year and five months after the halving. The third halving took place in May 2020, and the Bitcoin price rose from $9734 to $67,549 (April-November 2021), reaching its latest peak one year and six months after the halving. The 4th halving will occur in April 2024. It is expected that the price of Bitcoin may reach the peak of its price increase in one year and five months. The prices rose and reached a new peak during the last halvings, continuing the same trend.”
Impact of the Bitcoin ETFs to the increase
Lee stated that ETFs played a role in the recent increases, adding that many investors had been invested in the $38 thousand $48 thousand trading band during the previous bull season:
“The US SEC has officially approved Bitcoin ETFs, which allow investors around the world to invest in Bitcoin through regulatory compliance standards. This will surely increase interest and investments in Bitcoin. Grayscale was responsible for the sell-off that following the launch of ETFs. GBTC investors changed their positions and significant sales occurred. However, after these sales dropped to a certain level, daily net inflows started to increase. BlackRock opens its own sales network to sell Bitcoin ETFs”
“Fed and Halving are a good sign”
In addition to ETFs, Lee pointed out that more risky assets will rise in the near future as a result of Fed’s expected interest rate cuts and the halving.
“Bitcoin’s 4th halving will happen soon and the market is confident that the Bitcoin price will reach a record level after this halving… At the same time, the FED will cut the interest rate this year and I think this is a good sign for risky assets and emerging markets.”
Lee also stated that Ordinals and Inscriptions, built on the Bitcoin ecosystem, increase the demand for the largest cryptocurrency and further expand the ecosystem.