In the ever-evolving landscape of cryptocurrency, Bitcoin price has seen a notable uptick, trading at $42,806 with a 0.55% increase on Tuesday. This surge has been accompanied by growing interest in US-based crypto products, particularly following the approval of spot ETFs.
Enthusiasm is mounting in anticipation of the next Bitcoin halving event, with experts like SkyBridge’s Scaramucci predicting a significant jump in Bitcoin’s price, potentially surpassing $170,000 by 2025.
As the crypto community speculates on the outcomes of this halving, questions arise about whether it will trigger another hype cycle, mirroring past trends. This recent activity signals a dynamic phase for Bitcoin, intertwining market movements with strategic financial predictions.
Bitcoin Climbs to $42,800: A Post-ETF Rally Gains Momentum
In the wake of the US government’s approval of spot Bitcoin exchange-traded funds (ETFs), CoinShares has reported weekly trading volumes for US-based cryptocurrency investment products that are all time high. $1.24 billion in large inflows into U.S. funds occurred in the week ending January 12, with the introduction of spot Bitcoin ETFs being a key factor.
US crypto investment products dominated inflows after Bitcoin ETF approval ; Canada had highest outflows #BitcoinETF #crypto #investment #inflowshttps://t.co/rVR8aQkhkY
— Bitcoin Cables (@BitcoinCables) January 16, 2024
This spike in trading volume accounted for almost 90% of daily trading activity on reliable exchanges, with a weekly all-time high of $17.5 billion. Although total weekly inflows topped $1.18 billion, CoinShares observes it falls short of the milestone set by Bitcoin futures ETF debuts in October 2021. This development could add to the optimism around Bitcoin pricing.
SkyBridge’s Scaramucci Foresees Bitcoin Soaring Past $170,000 Post-Halving
SkyBridge’s Anthony Scaramucci expects Bitcoin could hit $170,000 in 2025, spurred by demand for newly listed ETFs and the forthcoming halving event in April. According to him, Bitcoin might hit $170,000 by mid- to late-2025 if it is only worth $45,000 at the time of the halving. A technical occurrence known as the halving lowers the rate of new Bitcoin issuance.
SkyBridge's Scaramucci sees bitcoin over $170,000 by 2025 on halving, spot ETFs https://t.co/W4sEmxlc8a pic.twitter.com/vNz1j22MM5
— Reuters (@Reuters) January 15, 2024
Scaramucci said investors are switching from Grayscale Bitcoin Trust to recently listed spot Bitcoin ETFs, which is why the price dropped from $49,000 to $42,000 recently. Within the next eight to ten trading days, he anticipates a clearer picture of how these funds are affecting pricing. The news points to a favorable outlook for the mid-term price of bitcoin.
Anticipating the Next Bitcoin Halving: Predicting Another Surge in Hype
Now that spot bitcoin exchange-traded funds (ETFs) have been approved in the United States, market watchers are searching for the next big thing to propel cryptocurrency advances. There is a high desire from customers for conventional on-ramps into bitcoin, as seen by the notable capital inflows witnessed by Bitcoin ETFs.
Market observers are now concentrating on the impending bitcoin halving event, which will see a decrease in the number of new bitcoins released to miners as a result of the recent acceptance.
Will the next bitcoin halving lead to another price hype cycle?
Opinion, by @danielgkuhn for The Node newsletterhttps://t.co/uzes5jOtI1
— CoinDesk (@CoinDesk) January 15, 2024
Previous bitcoin halving events have been linked to positive price trends, yet there is still disagreement about whether these events are “priced in.” It is anticipated that, as in past halving cycles, a limited supply of new coins hitting the market could result in a possible spike in bitcoin prices.
Bitcoin Price Prediction
On January 16th, Bitcoin (BTCUSD) showcased a modest rise, marking a 0.76% increase to a trading value of $42,812. The 4-hour chart analysis reveals a pivot point at $43,220, suggesting a critical juncture for the cryptocurrency. Bitcoin faces immediate resistance at $44,384, with subsequent levels at $45,260 and $47,060. Support, on the other hand, is found at $41,472, followed by $40,570 and $39,424.
The technical indicators offer a nuanced view of Bitcoin’s current market position. The Relative Strength Index (RSI) stands at 45, indicating a neutral market sentiment, neither overbought nor oversold. Meanwhile, the 50-Day Exponential Moving Average (EMA) is at 43,811, providing a dynamic level of resistance.Bitcoin Price Chart – Source: Tradingview
Bitcoin’s chart pattern shows a consolidation phase, with the price oscillating in a narrow band between $43,220 and $41,470. This consolidation suggests a period of indecision among traders, awaiting a clear directional cue. The overall trend for Bitcoin appears to be cautiously bearish below the $43,220 pivot point. If the price sustains below this level, it may further test lower supports, reaffirming the bearish outlook.
Conversely, a breakout above $43,220 could shift the trend to bullish, opening the path towards testing higher resistance levels. In the short term, traders should monitor these key price levels closely, as they will likely dictate Bitcoin’s next significant movement in the market.
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