Bitcoin’s pre-halving risk, CEOs remain bullish.
According to an analyst, Bitcoin has a history of dropping in the weeks leading up to the halving and may do so again in the upcoming week. Bitcoin could soon be approaching a period before the halving where its price has typically decreased.
In a post on March 17, crypto analyst Rekt Capital shared that Bitcoin will officially enter the ‘Danger Zone’ in 2 days, where historical pre-halving retraces have typically started.
Rekt Capital explained that historically, Bitcoin has experienced a decrease in price in the 14 to 28 days preceding its halving event. During the 2016 halving, Bitcoin’s price dropped by 40% during this period, and in 2020, it fell by 20%. In January, Rekt Capital predicted that a “pre-halving rally” would take place approximately 60 days prior to the halving, followed by a “pre-halving retrace” occurring one to three weeks before the halving.
The prediction was proven correct when Bitcoin began to surge in mid-February and then exceeded its previous cycle’s all-time high of $68,990 in March, surprising analysts. This marked the first instance of Bitcoin achieving this milestone before a halving event.
According to CoinMarketCap, the upcoming halving is predicted to occur in approximately 33 days on April 20. Despite this, the price of Bitcoin has already dropped by 8.5% from its peak of $73,835 on March 14 to its current value of $67,537, as reported by Cointelegraph Markets Pro. During an event in Bangkok on March 17, Binance CEO Richard Teng expressed his belief that Bitcoin will surpass $80,000 by the end of the year, as stated by Bloomberg.
Teng stated that Bitcoin is still in its early stages and highlighted the significant investments made by institutional investors in the cryptocurrency through newly launched United States exchange-traded funds (ETFs), which currently manage $57 billion, as reported by Dune Analytics data.
The Binance boss stated that he foresees Bitcoin surpassing $80,000 due to decreasing supply and sustained demand, but he noted that the journey will not be linear and price fluctuations are expected. Kris Marszalek, co-founder and CEO of Crypto.com, commented on CNBC on March 15 that the recent drop in Bitcoin’s price was a positive development, as it helped reduce excessive leverage in the market.
He stated that his exchange is currently witnessing a surge in the value of Bitcoin, similar to what was observed in late 2020 and early 2021. During that period, Bitcoin experienced a significant rally, increasing from below $20,000 to over $60,000 in slightly over three months. He remarked that the present level of fluctuation is relatively low when compared to previous cycles.
Marszalek expected a gradual increase in the price of Bitcoin, anticipating less volatility as it is an asset that is meant to be held for long periods of time rather than short-term gains.