Key Points
- Bitcoin is trading above $70,000, with predictions of a post-halving surge to over $150,000.
- Bitcoin ETFs have accumulated over 841,900 BTC, worth $59.2 billion, representing 4.28% of circulating supply.
Bitcoin continues to maintain a strong position above the $70,000 mark, ahead of the much-anticipated halving event. Market analysts predict a significant long-term price surge post-halving.
Post-Halving Price Predictions
Analysts from Bitfinex anticipate that the price of Bitcoin (BTC) could increase by over 160% after the halving, reaching a cycle peak of over $150,000. This prediction is based on a simple regression model, which forecasts a post-halving price surge within the next 14 months, with a price range of $150,000 to $169,000.
Despite a 2.2% drop in the 24 hours leading up to 11:50 am UTC, Bitcoin traded at $70,694, demonstrating a weekly increase of over 7.5%.
However, analysts warn of increased selling pressure due to Bitcoin reaching an all-time high before the halving for the first time in its history. This could lead to significant selling pressure as 1.87 million BTC, or 9.5% of the circulating supply, was purchased above the $60,000 mark.
Bitcoin ETFs and Market Influence
The inflow from US spot Bitcoin exchange-traded funds (ETFs) has significantly contributed to Bitcoin's price rally. By mid-February, Bitcoin ETFs accounted for approximately 75% of new investment in Bitcoin as it exceeded the $50,000 mark.
Since their introduction, Bitcoin ETFs have accumulated over 841,900 BTC, valued at $59.2 billion, which represents 4.28% of Bitcoin's circulating supply. The accumulation pattern of the past two weeks suggests that Bitcoin ETFs are on track to absorb 2.6% of Bitcoin's supply per year.
Last week, Bitcoin ETFs amassed over $500 million worth of net inflows, with a total of $286 million worth of daily net inflows on April 8, the first trading day of the week.
However, the Federal Reserve's quantitative tightening, which is removing liquidity from markets, could cause a sharp decline in Bitcoin prices during the halving period. This viewpoint was shared by Arthur Hayes, the co-founder of BitMEX, in an April 8 blog post.
