The current Bitcoin bull cycle has defied expectations with its resilience, primarily attributed to the influx of institutional capital into the cryptocurrency market, as highlighted by Ki Young Ju, CEO of Cryptoquant. With Bitcoin recently smashing through the $70,000 mark, analysts are buzzing with optimism, suggesting that the digital asset is still undervalued and poised for further growth.
Renowned analyst Michael van de Poppe, among others, has underscored Bitcoin’s undervaluation despite its record-breaking performance. While hitting $70,000 marks a historic milestone, van de Poppe believes there’s significant room for appreciation.
A cohort of analysts echoes his sentiment, some projecting Bitcoin’s price to surge as high as $150,000 or even $200,000 during this cycle. Institutional demand, fueled in part by the introduction of Spot ETFs, has been a driving force behind Bitcoin’s upward trajectory.
However, analysts caution that an impending halving event scheduled for April could trigger a temporary correction in Bitcoin’s price. The halving, occurring roughly every four years, entails a reduction in miners’ rewards for validating transactions. Van de Poppe anticipates a potential correction of up to 30%, providing an opportunity for short-term profit-taking.
Meanwhile, despite concerns over the halving event, Bitcoin’s strength remains evident, with ETF inflows reaching unprecedented levels. Recent data from BitMEX Research reveals that BTC ETFs have witnessed net inflows exceeding $2 billion in March alone, highlighting the growing institutional acceptance of Bitcoin as a legitimate asset class.
The bullish sentiment surrounding Bitcoin extends to the broader digital asset market, with its market capitalization soaring from nearly $868 billion to $2.2 trillion since the year’s inception, trading at $71,733.27. Nonetheless, some analysts advocate for tempered optimism, citing uncertainties surrounding the halving event.
Analyst Ali Martinez notes that historically, Bitcoin tends to reach new all-time highs approximately 8 to 11 months after halving events, providing a potential roadmap for its future price action.
