Bitcoin’s fourth-ever halving, which took place on April 20, could pave the way for an incredibly bullish cycle, fueled by historical trends and the introduction of spot Bitcoin ETFs.
Before the halving event, Bitcoin soared to a record high of over $73,600 on March 13, marking a significant milestone. History shows that after previous halvings, Bitcoin’s price reached new peaks between 518 to 546 days later.
This time around, the combination of the pre-halving all-time high and the influx of institutional investments from the ten United States spot Bitcoin ETFs has set the stage for what experts are calling the“most bullish setup” for Bitcoin.
Sukhveer Sanghera, founder and CEO of Earth Wallet, “The combination of nearly all BTC having been mined, early investor via ETFs, increasing demand for inflation hedges, and increased utility — all fundamental aspects of Bitcoin’s value proposition are stronger than ever before.”
Bitcoin’s price took a dip of 5.6% on the weekly chart, but it’s still standing strong above $63,600 as of 9:58 a.m. UTC. According to TradingView data, the first cryptocurrency only climbed 2.85% over the past month, but it’s been on a wild ride, soaring over 50% since the start of 2024.
While Bitcoin is generally expected to keep climbing in the long run, history tells us that halving often comes with short-term downturns.
Temujin Louie, the CEO of Wanchain, believes that if Bitcoin manages to break through the $65,000 resistance level, the current dip might be over. He said, “Historically, Bitcoin halvings were followed by a slump. Expect to see continued consolidation so long as support around $58,000 holds.”
He added, “If BTC breaks recent highs, look for a rapid increase to $80,000, $90,000, or even $100,000 as investors favor round numbers.”
Over the past month, Bitcoin’s price has been sluggish, and experts point to a key reason: a slowdown in Bitcoin accumulation in the ten U.S. spot Bitcoin ETFs. Data shows that during the week of halving, these ETFs saw a surprising $398 million in net outflows, compared to the previous week’s $199 million in net inflows.
Despite a recent dip, the ten Bitcoin ETFs have collectively gathered over 835,000 BTC, valued at $53.5 billion, making up 4.24% of the total Bitcoin supply.
In the midst of this, there’s an optimistic buzz around Bitcoin’s price movement. Despite a brief slowdown in ETF investments, it’s seen as a sign that new investors are gearing up to dive into Bitcoin.
While some big banks are predicting a slight downturn in Bitcoin after the halving, Simanavicius sees strength in Bitcoin. He points to the potential for new money pouring in and its role as a hedge against inflation.
Moreover, Bitcoin’s growing reputation as a “hedge against political tensions” in the face of global conflicts is reinforcing its status as a haven asset.
Are you ready for Bitcoin’s bullish cycle after the halving, fueled by ETFs and historical trends?
Also Read: Bitcoin’s 840,000th Block Halving Cuts Miner Rewards by 50%
