Analyst Doubles Down On Another Bullish Year For Bitcoin, ETF Or Halving

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Last Updated on January 6, 2024 by Bitfinsider

Based on data from CoinMarketCap, Bitcoin (BTC) had a good start to 2024, rising by 3.18% in the first week of the year. The leading cryptocurrency is anticipated to start a bull market season, and many investors anticipate that proposals for Bitcoin spot ETFs from different asset managers would be approved right now.

Notwithstanding the outcome of the US Securities and Exchange Commission’s (SEC) decision in the coming days, cryptocurrency researcher Ali Martinez thinks that Bitcoin is still set up for significant gains in 2024 due to another bullish aspect. Martinez showed great excitement regarding the possible price performance of Bitcoin in 2024 in a post on X published on January 6. He claimed that regardless of what happens with the Bitcoin spot ETF story, there is still a positive narrative surrounding the Bitcoin halving that will cause significant price increases in BTC.

To put it another way, the Bitcoin Halving is a phenomenon wherein miners’ block rewards are lowered by 50%. It was initially observed in 2012 and occurs every four years. Because of the halving event, there is less Bitcoin available than there is demand, which creates scarcity and raises prices.

Martinez emphasized this point, noting that in the past, there has been a notable spike in the price of Bitcoin following previous halvings. On November 28, 2012, the first halving took place, and the price of Bitcoin was approximately $12. The token had reached a new price of $1,000 in the next year.

Following the second halving on July 9, 2016, when the price of Bitcoin was $670, a similar occurrence was observed. But by December 2017, Bitcoin had risen to a record high of $19,700. In May 2020, when the third halving occurred, the price of Bitcoin was $8,821. Bitcoin experienced a 700% increase by November 2021, reaching an all-time high of $68,783.

Martinez thinks that given that the next Bitcoin halving is scheduled for April 2024, investors in BTC are in a good position to make significant gains in the upcoming months based on this pricing history. Whether the SEC approves of a Bitcoin spot ETF or not, he argues that these cyclical gains should continue.

Since the previous day, Bitcoin has slightly declined, trading at $43,665 as of this writing. Overall, the top cryptocurrency has shown resiliency over the last week, recording a notable increase of 4.07%.

Bitcoin has performed remarkably well over the past year, seeing a significant increase of 159.94%. Nonetheless, there is a discernible decrease in daily trade volume, down 22.25% to $26.8 billion, in the midst of market volatility.

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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.