Analysts Anticipate Bitcoin Price Surge to $273K as Excitement Surrounding Bitcoin Halving Grows
Bitcoin enthusiasts are eagerly anticipating the upcoming halving event, which has historically led to significant price increases. Analysts are now predicting that Bitcoin could reach an impressive target of $273,000. This optimistic outlook is fueled by a favorable demand-supply ratio and past market trends.
The demand for Bitcoin is currently outpacing the daily new supply. Crypto analyst Willy Woo revealed on Twitter that $607 million in new investments flow into the Bitcoin network every day, while only $46 million in new Bitcoin is generated through mining. With the impending halving, where the creation of new Bitcoin will be halved, this daily dynamic becomes even more intriguing.
Woo’s analysis indicates that the supply reduction will occur in just 60 days, marking a potential turning point for Bitcoin. To measure new demand, Woo uses the change in the realized cap, which reflects the cumulative price paid for Bitcoin holdings. However, it’s important to note that this method may not capture all buying and selling activities happening off the primary Bitcoin network.
Further calculations conducted by MacronautBTC reveal that the daily demand for Bitcoin, estimated at $607 million, exceeds the daily new supply by $23 million. This results in a noteworthy daily demand of $584 million. Projected over 250 trading days, this translates to a substantial additional market capitalization of $1.46 trillion.
According to MacronautBTC’s calculations, every $1 trillion increase in market capitalization corresponds to a $50,000 surge in Bitcoin’s price. Using this metric, the projected additional market capitalization of $1.46 trillion could potentially drive Bitcoin’s price to reach $123,000. However, MacronautBTC introduces a “multiplier” method, in line with Willy Woo’s analysis, that suggests a potential threefold increase in Bitcoin’s value relative to the USD inflow.
Combining this multiplier with the projected additional market capitalization, MacronautBTC envisions an overall market capitalization of $5.38 trillion within a year, leading to a surge in Bitcoin’s price to $273,000. While these projections are speculative and depend on various factors, they highlight the positive sentiment surrounding Bitcoin as the halving event approaches.