- Bitcoin is surging as the April halving event nears, with analysts predicting a potential price climb to $75,000 and a significant post-halving rally.
- However, factors like the Federal Reserve’s interest rate decisions and the performance of the BTC-spot ETF market will influence Bitcoin’s price action in the coming weeks.
The highly anticipated Bitcoin halving event looms large just 20 days away in April 2024. As the countdown intensifies, Bitcoin (BTC) has exhibited encouraging signs with a recent price surge. At press time, BTC is trading around $69,500, boasting a market cap of $1.366 trillion.
Strong Breakout Paves the Way for Halving
Crypto analyst Rekt Capital suggests Bitcoin has initiated a breakout process, with the first step marked by a weekly close above the previous range high. The analyst emphasizes the need for a potential dip and retest at the range high to solidify this breakout. This “retest as support” would be the second step, confirming the uptrend and paving the way for a potential price climb to $75,000 as the halving event approaches.
Adding to the bullish sentiment, Bitcoin recently secured its first-ever monthly closing above its previous all-time high of $69,000.
Post-Halving Price Rally Anticipated
Mark Yusko, CEO and CIO of Morgan Creek Capital Management, predicts a significant BTC price rally following the halving event. He even projects a price target of $150,000 by year-end. Speaking to CNBC, Yusko elaborated, “The big move happens post-halving… It starts to become more parabolic towards the end of the year, historically around nine months after the halving, so sometime around Thanksgiving or Christmas, we see the peak price before the next bear market.”
Also Read: MicroStrategy Buys More Bitcoin as Price Drops – Saylor Sees Opportunity in Volatility
Key Factors Influencing BTC Price Action
In the lead-up to the halving, several factors will likely influence Bitcoin’s price action. One crucial element is the trajectory of Federal Reserve interest rates. With the US BTC-spot ETF market closed on March 29th, investors will be waiting for the Personal Income and Outlays Report and comments from Fed Chair Powell on April 1st.
Additionally, the upcoming release of non-farm payroll data and the unemployment rate for March in the United States will be significant economic indicators to watch.
The performance of the BTC-spot ETF market will also play a role. A decline in net inflows or even net outflows during the week could heighten Bitcoin’s sensitivity to US economic data. Furthermore, continued decreases in net outflows from the Grayscale Bitcoin Trust (GBTC) would be a positive sign for the BTC-spot ETF market. While GBTC witnessed a reduction in net outflows to $967.1 million in the week ending March 28th compared to the previous week’s $2,001.3 million, continued monitoring of this metric is necessary.
The next few weeks leading up to the halving event promise to be an exciting time for the cryptocurrency market. With a strong breakout underway and bullish predictions, Bitcoin appears poised for further gains. However, external factors like the Federal Reserve’s monetary policy and the performance of the BTC-spot ETF market will undoubtedly shape its trajectory in the coming days.