Why Bitcoin Price is Surging? What Next for BTC Price Post Halving?
The Bitcoin market has recently witnessed a series of notable events, with Grayscale Bitcoin Trust (GBTC) outflows signaling reduced selling pressure, Bitcoin’s price showing resilience at $43,500 levels, and optimism building around the upcoming Federal Open Market Committee (FOMC) meeting rate cut’s. This article explores the implications of GBTC outflows, the current state of Bitcoin’s price, and expert predictions regarding the market’s future.
GBTC Outflows Dip Below $200 Million
Slowing Down Outflows
On January 29, GBTC recorded its 12th consecutive day of outflows, signaling a noteworthy decline to $191.7 million. This reduction suggests a diminishing selling pressure on Bitcoin and marks a nearly 25% drop from the $255 million outflow on January 26.
Liquidity Leadership
Despite the outflows, GBTC maintains its liquidity leadership, with daily trading reaching $570 million, surpassing competitors like $IBIT by approximately $110 million, according to Bloomberg Intelligence analyst James Seyffart.
ETF Inflows vs. GBTC Outflows
Fidelity’s spot Bitcoin ETF (FBTC) made headlines by surpassing GBTC in daily inflows with $208 million on January 29. This shift indicates a changing investor sentiment and raises questions about the impact on Bitcoin’s price.
Bitcoin Price and Market Predictions
Consolidation and Altcoin Resurgence
Cryptocurrency analyst Michael van de Poppe suggests that Bitcoin is consolidating around $43K and predicts a potential run to $48–50K before the halving. He emphasizes the likelihood of altcoins outperforming in the current bullish market conditions.
Market Capitalization Projection
Van de Poppe anticipates the cryptocurrency market’s total capitalization to reach $2 trillion in the next 2–3 months. Despite a recent dip, he notes a quick market recovery and highlights the positive outlook for projects like $SOL, $INJ, and Layer 2 solutions.
Bitcoin Halving: Last Buying Opportunity?
Renowned crypto analyst Rekt Capital provides insights into Bitcoin’s journey leading up to the anticipated Halving in April 2024. He suggests that the next two weeks may be the last chance for investors to buy Bitcoin at “bargain-buying” prices.
Pre-Halving Phases
Rekt Capital outlines the phases leading to the Halving, emphasizing historical patterns. As the Pre-Halving period concludes, he discusses the “Buy the Hype, Sell the News” strategy adopted by investors around 60 days before the Halving.
Pre-Halving Retrace
A potential price drop is hinted at during the Pre-Halving retrace, marked by a dark blue circle a couple of weeks before the event. Historical data reveals significant retracements in 2016 (-38%) and 2020 (-20%).
Re-Accumulation Phase
Following the Pre-Halving retrace, a multi-month re-accumulation stage (red) ensues, lasting up to 150 days. Rekt Capital notes challenges for investors during this period, such as boredom and impatience. However, the breakout from this phase leads to a parabolic uptrend, propelling Bitcoin to new All-Time Highs.
The combination of diminishing GBTC outflows, positive market sentiments, and expert predictions indicates a potentially optimistic outlook for Bitcoin. As investors navigate the current landscape, attention is focused on the upcoming FOMC meeting and the trajectory leading up to the Halving, with analysts offering valuable insights for strategic decision-making.
