Jesse Meyers, prominent crypto investor and co-founder of Bitcoin investment firm Onramp Bitcoin, believes that the cryptocurrency’s peak will reach $100,000 only after the block grant halving in April 2024 and not before.
Author X (formerly on Twitter) shared on the Ones-in-a-Species Bitcoin Newsletter his thoughts on the fact that the crypto market price is not going to halve in the next 12-18 months.
Bitcoin will reach an all-time high if the halving
Every four years, Bitcoin goes through a cycle in which the reward for mining a block on the Bitcoin network is halved for every 210,000 blocks mined. The mechanism is built into the Bitcoin mining algorithm to reduce inflationary pressures and preserve resource scarcity. Currently, the mining reward is 6.25 BTC ($170,000) per block mined, which will drop to 3.125 BTC per block in the first half of next year when the Bitcoin network reaches the block threshold.
While many experts expect the bitcoin halving, Myers believes that the markets will feel the brunt of the halving. He also criticized the efficient market hypothesis (EMF) - a theory in financial economics that states that market prices will always reflect available information about a particular asset - as incorrect.
Various market analyzes show that bitcoin price performance has always followed the same pattern as the halving event a year ago. Cryptocurrency trader and analyst Rect Capital explained to X that the BTC price tends to correct before heading towards the halving, but right after the price recovers and reaches a new all-time high without turning back.
Myers' opinion is at odds with other forecasts that predict Bitcoin's price performance in the coming months and after the halving. Market cyclist Cole Garner believes that Bitcoin could enter a “full bull” cycle in October under two scenarios: if whales (large holders) and fish (small holders) continue to accumulate more BTC without selling their holdings, or if markets close. higher. Bitcoin's 200-week simple moving average (SMA).
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Meanwhile, veteran analyst Philip Swift warned investors not to rule out the possibility of Bitcoin returning to the $20,000 level in the coming months. TechDev, another popular cryptocurrency analyst, says that BTC will see a “parabolic peak” around 2024, and the overall crypto support will be halved.
Robert Kiyosaki, billionaire entrepreneur and author of the best-selling novel Rich Dad Poor Dad, predicts that Bitcoin will reach $100,000. He also warned that if the stock and bond markets collapse or major global economies enter a recession, the price of BTC could reach $1,000,000.
The previous half of the cycle had the same pattern of rising prices
By analyzing the past price cycles of Bitcoin, it can be seen that most of the periodic gains of the digital asset occur after the halving rather than after the event itself. Over the last three periods — 2012, 2016, and 2020 — BTC has taken a maximum of 240 days to reach a new all-time high, according to data shared by trading firm Stockmoney Lizards.
Sharing their thoughts on X, StockMoney Lizards said the event was “highly anticipated” and said that a new all-time high would only happen after the Bitcoin halving in 2024.
At the time of writing, Bitcoin (BTC) was trading at $29,114.83, down 0.8% in the past 24 hours.