4 things that can spark the next Bitcoin bull cycle
Bitcoin (BTC) has dropped nearly 15% from its yearly high of around $31,000, with the recent regulatory crackdowns on Coinbase and Binance crypto exchanges and the Federal Reserve's hawkish forward guidance accelerating its selloff.
Still, Bitcoin is up 60% year-to-date (YTD), holding above a technical support level of $25,000. Moreover, a new bull cycle can begin for a few reasons.
The next Bitcoin halving, a pre-programmed event that slashes the cryptocurrency's supply rate by half every four years, is in April 2024.
The previous three Bitcoin halvings (2012, 2016, 2020) have all preceded massive BTC price rallies and new all-time highs. For instance, BTC is up 276% since the previous halving in May 2020.
The market will likely be in an accumulation zone until the halving, according to analyst Lark Davis, who anticipates Bitcoin to test its record high of $69,000 in the next 18-24 months. One analyst even sees the price hitting $160,000 by April 2024.
Volatility, volumes, and realized values are at multi-year lows, indicating that Bitcoin investor apathy is firmly in play. However, under the surface, HODLers continue their classic slow and steady accumulation, with the halving now less than 1yr away.To find our more,… pic.twitter.com/1w2gMTRWCC
Related: Why Cathie Wood is bullish on Coinbase stock and believes Bitcoin will reach $1 million
BlackRock's Bitcoin ETF application to the U.S. Securities and Exchange Commission (SEC) has also boosted confidence in a potential BTC price rally in the days leading up to the halving.
The investment firm, which manages $8.5 trillion in assets, has a near-perfect ETF approval record with the SEC. The SEC's deadline to respond to BlackRock's application is around March 2024, a month
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