Many analysts believe that the price of bitcoin could potentially reach $10,000 before the halving is set to occur.
Could Bitcoin Spike It Big All Over Again Soon?
If that’s the case, bitcoin would need to spike to the five-figure range in less than two weeks. Can it be done? Is this enough time for the asset to truly make its mark?
The last time bitcoin was trading in the $10,000 range was last February. This held for a few weeks and then the currency fell victim to the hazards of the market as the coronavirus pandemic began to take over. Within a short period, the currency had lost thousands of dollars from its value and even (albeit briefly) traded in the high $3,000 range, suggesting that the currency had lost close to 70 percent in less than a month.
But now bitcoin is back on the warpath and is proving its resilience once again. At the time of writing, the number one cryptocurrency by market cap is trading for over $8,800, and many traders and enthusiasts around the world think this is just the tip of the iceberg for bitcoin.
Simon Peters – an analyst at crypto exchange e-Toro – explained in a recent interview that he’s confident bitcoin will add more than $1,000 to its price within the next week just prior to May’s highly anticipated halving. He comments:
We think it is likely the [bitcoin] price will go above $10,000 before the halving actually takes place. While the halving itself was always likely to drive the price up, the bitcoin bulls have decided not to wait around and are positioning themselves well ahead of time… As for how high it can go longer term, amid the deteriorating economic outlook for the U.S. economy and the likelihood of an ever increasing monetary supply, which weakens the U.S. dollar and stokes inflation fears, we believe it could easily test previous highs above $19,000 as investors look for safe-havens away from traditional assets.
Catherine Coley – chief executive of Binance U.S. – commented that bitcoin has always been bullish during its previous halving events, though she believes the one that occurred in 2016 was something of a fluke. This halving – which occurred in 2016 – didn’t result in much momentum for the world’s primary digital currency, and she says that the real test came later in 2017.
The Big Test Came Not During the Halving, but Later
During that time, bitcoin spiked all the way to about $20,000 per coin. Coley explains:
In 2016, I didn’t participate in the halving and all things considered, it was a minor event. The real rally happened 18 months later… With unemployment and stimulus funding flooding [the] system, I think more people are looking for an alternative exposure to a market that’s unrelated to [the U.S. dollar].