Bitcoin, the flagship cryptocurrency, has yet to reach the predicted stratospheric heights, but could well get there after the highly anticipated halving event. According to the optimistic outlook of Alliance Bernstein, a global investment firm, the price of Bitcoin is likely to rise up to $90,000 after the halving planned for April.
The road to $90,000 after halving
Although Bitcoin has not yet crossed the symbolic mark of $90,000, Alliance Bernstein predicts that this milestone could be reached after the highly anticipated halving event. In a note published on March 21, analysts Gautam Chhugani and Mahika Sapra said: “Given overall bull market conditions with strong ETF inflows, low miner leverage and robust network transaction fees This cycle, the impact of halving appears relatively light on miners, with dollar revenues cushioned. »
The halving, which will take place on April 20, is a quadrennial event in which Bitcoin miner rewards are permanently halved. This planned supply adjustment is expected to make Bitcoin even more scarce and, therefore, more valuable according to many experts.
The Insatiable Appetite for Bitcoin ETFs
One of the main catalysts for this price surge is the highly anticipated approval of 11 spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) in January. These exchange-traded products, allowing investors to buy stocks that track the underlying price of Bitcoin, have been wildly successful, seeing record inflows week after week.
According to data from CoinShares, a European fund manager specializing in digital assets, a new record was broken last week with $2.9 billion flowing into crypto funds, with the vast majority backing Bitcoin ETFs. The previous week, investors had injected $2.7 billion into these funds offering exposure to digital assets.
As the Bitcoin halving approaches, the excitement around the leading crypto is only intensifying. With ambitious bullish forecasts from major players in the investment industry like Alliance Bernstein, and a massive influx of capital into the recently approved Bitcoin ETFs, Bitcoin appears well on its way to dizzying new highs.
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