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Bitcoin Might Reach $149K After Next Halving Cycle: Pantera Capital

Wed, 11/23/2022 - 11:34
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Tomiwabold Olajide
Next halving is expected to occur on April 20, 2024
Bitcoin Might Reach $149K After Next Halving Cycle: Pantera Capital
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Analysts at the top asset management company, Pantera Capital, believe the Bitcoin price might hit $149K, but no sooner than after the next halving — presumably, in 2025.

The next halving is expected to occur on April 20, 2024, and will see the mining reward halved from 6.25 BTC per block to 3.125 BTC per block.

Every four years, that "block reward" is cut in half, which is called "halving." This process repeats until the year 2140, when Bitcoin will reach its 21 million fixed supply.

Pantera Capital analysts opine that if the demand for new Bitcoins remains constant and the supply of new Bitcoins is slashed in half, this might force the price up. Also, there has been an increased demand for Bitcoin before the halving event because of the expectation of a price increase.

Based on precedents, Pantera notes that the typical bottom formation is one year and three months before the halving and, on average, the market peaks 1.3 years later, which implies a total of two and a half years to see the impact of the halving.

According to Pantera, if history were to repeat itself, the price of Bitcoin would bottom most likely on Dec. 30, 2022, and a rally early in 2024 might set in, followed by a strong rally after the actual halving event.

Bitcoin has historically bottomed 477 days before halving, rallied leading into the event and consequently made an upside run. If this repeats, the next halving might see Bitcoin rise to $36K before the halving and $149K after.

Even higher predictions

Renowned venture capitalist Tim Draper restated his prediction that the Bitcoin price would be able to hit the $250,000 level and even go beyond it.

$250,000 per Bitcoin? Tim Draper Explains Why He Still Stands by His Bullish Prediction

Draper has repeatedly predicted that BTC may hit $250,000 by the end of 2023.

Bitcoin is trading at $16,555, a mild 5% increase after an earlier decline brought about by FTX contagion fears.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.