With only one month left until the Bitcoin (BTC) halving, the price of BTC has retraced despite recent capital inflows that led to a new all-time high earlier this month. However, industry experts remain largely optimistic and believe that the retracement is not a cause for concern.
Bitcoin has experienced significant price growth in 2024. On January 1st, the price of Bitcoin was $42,208. On March 14th, Bitcoin reached a new all-time high of $73,737. However, BTC has been unable to maintain this high as the countdown to the halving continues.
Samson Mow, CEO of Jan3, a technology company focused on expanding Bitcoin access globally, has been predicting a significant upward price movement for some time. He is confident that Bitcoin will surpass its all-time high soon. Mow predicts that the price will soar to $100,000 before the halving, citing the voracious demand from exchange-traded funds (ETFs) as a driving factor.
While Mow expects a substantial price rise in the next 30 days, others believe that the dip may go even deeper. Ran Neuner, a prominent figure in the industry, stated that a 20-30% dip would be normal and healthy during a bull market. Similarly, Danny Chong, co-founder of Tranchess, a decentralized asset tracker, suggests that a temporary downturn may occur after the halving, but the overall market sentiment will remain bullish.
According to Chong, the optimism in the market is linked to the growth of ETFs. He believes that a pre-halving price dip is in line with historical precedent. However, industry observers maintain that the long-term direction for Bitcoin’s price is likely to be upward. They argue that institutional investors and the constrained supply of Bitcoin will provide strong support for its price during potential retracements.
Zac Cheah, co-founder and CEO of Pundi X, also believes that this halving is unique due to the involvement of institutional investors and the current market conditions. Additionally, with the US Federal Reserve considering interest rate cuts, the positive case for Bitcoin becomes even stronger. Cheah predicts a potential surge to $100,000 during the upcoming halving cycle.
When asked about the relationship between Bitcoin and the broader crypto market, Mow believes that Bitcoin will decouple from other cryptocurrencies due to the massive inflows from ETFs. He argues that while smaller cryptocurrencies may track Bitcoin for a while, they will eventually lose steam and be left behind.
In conclusion, despite the retracement in Bitcoin’s price, industry experts remain optimistic about its future performance. They predict that the price will surpass its previous all-time high and potentially reach $100,000, driven by institutional investors and the positive market conditions. However, the relationship between Bitcoin and other cryptocurrencies may change as Bitcoin’s dominance increases.