It was evident. The recession would fall mercilessly on the crypto market and destroy the faith of the few investors who still continued to believe in a hypothetical recovery of the market. The economic hemorrhaging in European and American financial markets was so persistent that a recession could only be expected after giants like Binance and Coinbase carried out mass layoffs. However, the crypto market has proven to be very resilient. We must now believe that the frightening specter of recession has dissipated and that a new dawn is dawning on the world of cryptos. Bitcoin could even be on the verge of entering a bullish phase. Want to understand better? Read instead.
Fears of a 2023 crypto recession allayed: the worst is over, experts say
After the blow of the November 2022 collapse of FTX, the confidence of most investors had seriously weakened and the charts showed a general downward trend. Fortunately, for most cryptocurrencies, the year 2023 started on a good note, thanks to the lull in inflation and the relative easing observed in the macroeconomic situation.
The market has since moved from fear to neutrality, after a short season of greed driven by the native volatility of the cryptocurrency market, which was fueled by the interest rate policy of the US Federal Reserve. We also understand why BTC and ETH are showing very weak signs of recovery at the moment. The other cryptocurrencies, too, are all very far from their ATH.
That said, if we agree that the recovery will take time and that the current situation is not very comfortable for impatient investors, the worst is still over. It is a fact. Cryptocurrencies, in this case BTC and ETH, have weathered the context of financial uncertainty, tightening credit conditions and the fragile health of the bond market very well.
We will therefore remember that there will ultimately be no recession on the crypto market, contrary to collective fear. And it is not the crypto payment company Block.Inc, which achieved record turnover in the second quarter thanks to BTC, which will say the opposite.
After fears of a recession, BTC is preparing a rally very soon?
BTC could enter a bullish phase by then. At least that’s what crypto analysts say in the latest report from the analysis firm Adamant Research on cryptocurrencies. Rather optimistically, Adamant Research has also indicated that BTC will experience an accumulation phase, going from $22,000 to $42,000, before entering a multi-year increase which will bring it to a historic peak of 120,000. dollars.
And it is not necessarily because each economic crisis is often followed by a phase of growth. For these crypto experts, the prediction of an upcoming BTC rally does not come from the rotating nature of economic cycles. They believe that the massive demand for Bitcoin ETFs by traditional financial companies will be the primary fuel for the uptrend.
Indeed, some big names in crypto in particular have recently doubled their demand for spot ETFs. These include, among others, Fidelity Investments, Blackrock, Wisdomtree and Invesco. Since then, the BTC price seems to have received a good boost. Analysts, who see this as a very good sign for the second half of the year, believe that the worst is over for the parent cryptocurrency.
BTC could soon rise to $100 – $120,000!
It is important to remember that in November 2012, more than 10 years ago, the company Adamant Research was one of the first companies to publish a report on BTC. A little memory exercise allows us to realize that each time this company published a report, respectively in 2012, in 2015 and in 2019, a period of increase in BTC followed. Do your checks.
Obviously, we cannot draw certain conclusions from this trend. Cryptocurrencies do not always follow set paths. However, the company’s publication of a report on cryptocurrencies last April cannot help but suggest a possible upcoming rise in BTC.
We will also specify, to add value, that Standard Chartered Bank had also predicted in April 2023 that the long crypto winter had come to an end and that we could see the price of BTC rise to $100,000 by 2024. And you, do you think that BTC will finally reach 6 figures in 2024? While waiting for your response, here is yet another index that reinforces the predictions of an upcoming rally in the parent cryptocurrency.
Next BTC halving in April 2024: will BTC really go to 6 figures?
While we cannot make absolute predictions at this time, analysts indicate that the expected rally could be favored by the crisis in the banking sector. It is precisely the resilience of BTC in the face of this context of financial uncertainty, the tightening of credit conditions and the fragile health of the bond market, which has strengthened its reputation.
And while we can’t latch on to this one factor, there’s one clue we can’t ignore: it’s the next halving. If you check your calendar, you will notice that the last BTC halving occurred on May 11, 2020, increasing the mining block reward from 12.5 BTC to 6.25 BTC.
Knowing that BTC halvings occur every 4 years, the date of the next halving is April 26, 2024, i.e. when block 840,000 appears. Yes, we are very close to it now. The countdown has already started. After this event, the mining reward will be halved and will go from 6.25 BTC to 3.125 BTC and the price of BTC will undoubtedly experience an unprecedented boost like after all halvings. Moreover, BTC miners are already working hard to see BTC rise to $98,000 before 2024.
As the tumultuous winds of economic uncertainty blew with force, the cryptocurrency market demonstrated remarkable resilience, defying the darkest predictions. Recent events have not only boosted the credibility of BTC and other cryptos, but also highlighted their potential as true safe haven assets in times of crisis. BTC’s trajectory, in particular, is a testament to its growing maturity and ability to adapt to macroeconomic challenges. With the next halving on the horizon and positive signals coming from major financial institutions, the future looks bright.
Receive a summary of the news in the world of cryptocurrencies by subscribing to our new servicedaily and weekly so you don’t miss anything of the Tremplin.io essentials!