Bitcoin Price Prediction: Analyzing the ETF Surge and Bitcoin’s Stability Post-Halving

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After years of denial, 2024 is a year of crypto as the SEC finally approved the Spot ETFs in the US in January. A trillion-dollar industry that has given a much-needed cash flow to the crippling crypto market. Bitcoin’s recent resurgence can be attributed to various factors, notably a surge in ETF activity.

In a single day, nine ETFs amassed a remarkable 6,124 Bitcoin, totaling around $380 million. Collectively, ETFs now possess a substantial 824,600 Bitcoin. After the ETF surge, Bitcoin saw a 1.5% rise, reaching $64,340. 

But wait. Let’s back up a little. Do you think BTC will remain stable post-halving? When will it hit its peak? There is only one way to find out. Dive in!

Understanding the Positive Signs!

Along with the ETF approval euphoria, market participants have keenly observed the Federal Reserve’s monetary policy decisions, particularly interest rate policy. Initially, many rate cuts were expected throughout the year to reduce inflation. Sentiment changed as economic data showed persistence in inflationary patterns, bringing down expectations for aggressive rate cuts. Analysts now expect the Fed to cut rates only once or twice in 2024, if at all.

However, talking about microeconomic factors, like Bitcoin Halving in April, caused a high level of speculation in the market. The Bitcoin community eagerly awaited the Bitcoin Halving event in 2024. Historically, the Halving has been a watershed moment for Bitcoin, triggering significant rallies in its price.

The anticipation of this event and the bullish sentiment surrounding Bitcoin fueled optimism among market participants. However, analysts cautioned that while the Halving typically catalyzes a surge in Bitcoin’s price, it may also introduce short-term price fluctuations.

Chances of Peak?

Moreover, researchers have used historical trends and technical analysis to predict Bitcoin’s price. Prominent crypto market researcher Rekt Capital predicts a peak between mid-December 2024 and early March 2025. He also admits that resynchronization with typical Halving cycles could affect Bitcoin’s peak.

Meanwhile, Ali Martinez and others have stressed key indicators like the “MVRV 90-Day Ratio” in assessing Bitcoin’s market dynamics. Despite fluctuations, Martinez said Bitcoin will remain in a “prime buy zone” despite moving between $57,000 to $64,000, indicating near-term positive momentum.

Putting the Pieces Together

Looking ahead to August 2024, market participants remain cautiously optimistic about Bitcoin’s stability. Factors such as U.S. job data and the potential for rate cuts in July could influence market sentiments and contribute to Bitcoin’s price stability.

Despite fluctuations, Bitcoin’s trading volume remains robust, underscoring sustained investor interest in the cryptocurrency market and its potential for further growth. Hence, analysts see a potential breakout towards the $90,000 mark, with crucial levels around $71,000 expected to undergo testing in the coming days.