Bitcoin’s price has experienced a pullback after hitting a new all-time high. Will it rebound and reach $100,000 before the halving next month?
Bitcoin Rollercoaster: All-Time High Followed by a Retracement
2024 has been a wild ride for Bitcoin. The year started with a price of $42,208, and it surged to a record-breaking $73,737 on March 14th. However, the past few weeks have seen a correction, with the price dropping over 16%.
Samson Mow: Betting Big on Bitcoin’s Future
Despite the recent dip, industry figures like Samson Mow, CEO of Jan3 (a Bitcoin accessibility company), remain bullish. Mow predicts Bitcoin will not only surpass its all-time high, but reach a staggering $100,000 before the April 20th halving.
Mow’s Rationale: Scarcity Fueled by ETFs
Mow attributes his prediction to the growing demand for Bitcoin from exchange-traded funds (ETFs). These investment vehicles are rapidly accumulating Bitcoin, with daily purchases estimated at around 7,000 coins. This constant buying pressure, coupled with Bitcoin’s limited supply (21 million coins), creates a situation of scarcity that could drive the price up.
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Bitcoin: Decoupling from the Crypto Pack?
Mow believes Bitcoin will eventually decouple from the broader crypto market due to the immense capital inflows from ETFs. These inflows, ranging from $500 million to $1 billion daily, provide a significant advantage for Bitcoin compared to other cryptocurrencies with lower liquidity.
Altcoins: Pump and Dump or Sustainable Growth?
Mow suggests that while smaller altcoins may follow Bitcoin’s price movements initially due to their lower liquidity, they lack the long-term fundamentals and could eventually lose momentum. He also expresses concern about potential manipulation within the altcoin market, where founders and insiders might inflate prices before exiting and leaving retail investors holding depreciating assets.
The Halving Factor: A Historical Catalyst
The Bitcoin halving, scheduled for April 20th, is a significant event that cuts the block reward for miners in half. Historically, halvings have been followed by substantial price increases for Bitcoin. Will this pattern hold true again in 2024? Investors will be closely watching the price action in the coming weeks.
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