|

What Bitcoin bear market? BTC price closely copying old halving cycles

Bitcoin (BTC $30,211) price action is right on track when it comes to sealing new all-time highs, new data suggests.

A suite of price metrics from on-chain analytics firm Glassnode released on April 11 hints that Bitcoin’s current halving cycle is playing out in classic style.

BTC price closely resembles prior halving cycles

With BTC/USD up over 70% in 2023 and far from its $15,600 lows in November 2022, analysts are already considering the role of next year’s block subsidy halving.

Set to cut the amount of BTC miners “mint” per block from 6.25 BTC to 3.125 BTC; the upcoming halving represents an emission decrease exactly like others that preceded it.

Bets are therefore increasing over the impact on Bitcoin price performance, likewise copying past halvings, with the event itself acting as a springboard for all-time highs.

A look at Glassnode’s figures underscores the similarities of the current halving cycle to previous ones. Despite comparatively muted gains in percentage terms, BTC/USD is now trending upward following what increasingly appears to be a bear market bottom.

Chart

Bitcoin’s price performance since halving. Source: Glassnode

Since its latest all-time high, tracking price action likewise places this cycle firmly within the historical context.

Bitcoin

Bitcoin’s price performance since all-time highs. Source: Glassnode

Meanwhile, in an analysis late last month, data resource Ecoinometrics offered additional insight into recent performance.

New all-time highs are also due, it agreed, bar a macroeconomic recession distorting the roadmap.

“Bitcoin’s price action suggests a bottom has formed, but with an impending global recession, it’s premature to assume,” it reasoned.

Economic uncertainty will increase demand for safe havens, but Bitcoin still trades very much like a risk asset.

Chart

Bitcoin’s price performance after the third halving. Source: Ecoinometrics

Up only to $180,000?

As Cointelegraph reported, the belief that the 2024 halving cycle will continue the good times has gone nowhere during the latest bear market.

Filbfilb, a co-founder of the trading suite DecenTrader, recently doubled down on his conviction that Bitcoin’s all-time high next cycle will come in 2025 and see a BTC price tag of around $180,000.

He noted that as time passes, Bitcoin price gains will see a “tapering effect” — smaller comparative gains in percentage terms with each cycle.

Author

Cointelegraph Team

Cointelegraph Team

Cointelegraph

We are privileged enough to work with the best and brightest in Bitcoin.

More from Cointelegraph Team
Share:

Editor's Picks

Crypto Today: Bitcoin, Ethereum, XRP trade under sustained selling pressure despite mild ETF inflows

Cryptocurrency prices remain under pressure as a risk-off mood persists on Friday, with Bitcoin consolidating its losses above $62,000. Altcoins, including Ethereum and Ripple, are extending their weakness, trading near lower support levels around $1,600 and $1.12, respectively.

Bitcoin Weekly Forecast: After the bloodbath, everyone looks at $60,000

Bitcoin (BTC) hovers above $62,000 at the time of writing on Friday, weighed down by growing risk-off sentiment due to persistent geopolitical tensions in the Middle East and sticky macroeconomic uncertainty.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit. A reactionary spike in on-chain activity and social chatter, reflecting a strength of community, but fails to absorb the price decline.

Arthur Hayes' “Holy Trinity” is dead: Exits Zcash after Orchard Pool exploit

Arthur Hayes dumped his entire Zcash holdings on Friday, a day after selling his HYPE and NEAR holdings. Zcash is down 13% so far on Friday, extending the 26% drop from the previous day.

Bitcoin: After the bloodbath, everyone looks at $60,000
Bitcoin (BTC) hovers above $62,000 at the time of writing on Friday, weighed down by growing risk-off sentiment due to persistent geopolitical tensions in the Middle East and sticky macroeconomic uncertainty. The institutional sell-off continued to wreak havoc on capital flows, with spot Bitcoin Exchange-Traded Funds (ETFs) recording billions in outflows.