Bitcoin’s Price Forecast: Can BTC Surge by $12K in 2024?

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The cryptocurrency world is abuzz with speculation and predictions, especially regarding the future value of Bitcoin. A recent prediction by Matrixport, a well-known crypto financial services firm, attracted particular attention. They predict that Bitcoin (BTC) could potentially reach a staggering $125,000 by the end of 2024, after the fourth halving event.​​​​​​

Understanding the halving phenomenon

To understand the basis of this prediction, one must understand the concept of Bitcoin halving. This is a built-in feature of Bitcoin that halves the reward for mining new blocks, thereby reducing the rate at which new Bitcoins are generated. This event happens roughly every four years and is seen as a pivotal moment for cryptocurrency. This greatly reduces the supply of new bitcoins, which according to traditional economic theory could cause the price to increase if demand remains constant or increases.

Historical trends and forecasts

Historically, Bitcoin has shown an upward trend in value in the period leading up to the halving event. However, there is no consistent trend immediately after the halving. Despite these short-term uncertainties, Bitcoin registered a new all-time high in each four-year period between halvings, suggesting a positive long-term performance​​.

CoinCodex, another source that deals with Bitcoin price predictions, supports this optimistic view. They predict an almost +50% increase in the price of Bitcoin one month after the halving in April 2024, reaching approximately $70,200. This rally is expected to continue through the year, potentially leading to a new all-time high of around $175,000. Watching more ahead, their algorithm suggests a peak above $170,000 in August 2025 before stabilizing in the $95,000-$100,000 range.​​​​

A bold prediction by Matrixport

Matrixport’s bold prediction of $125,000 depends on the historical impact of halving events on the price of Bitcoin and the general market expectation of those events. Given the cyclical nature of Bitcoin’s price movements around halving events and the long-term trend of hitting new all-time highs after the halving, their forecast is in line with the broader expectation of a significant price rise.

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