Bitcoin Price Expected to Experience Substantial Decline Prior to Achieving $1 Million Milestone, Analyst Forecasts
In a playful manner, Billy Markus, the creator of Dogecoin and a well-known fan of memes, recently raised a lighthearted question about the upcoming Bitcoin halving. Using his alter name “Shibetoshi Nakamoto,” Markus jokingly asked if the halving meant that the price of Bitcoin would be cut in half as well.
This humorous remark from Markus taps into the concerns of some Bitcoin enthusiasts who are worried about a potential decline in price after the halving. Even the official Kraken exchange account joined in on the conversation, clarifying that the halving doesn’t work that way. Markus responded with a tongue-in-cheek comment, asking, “What if it does, though?”
Meanwhile, Bitcoin advocate Samson Mow from Jan3 encouraged everyone to appreciate Bitcoin’s current value of $0.06 million and reminded them that we are still in the early stages of Bitcoin’s potential. While he didn’t make any specific price predictions, he has previously hinted at Bitcoin reaching $1 million, emphasizing the long-term perspective.
With just one day left until the Bitcoin halving, which will cut block rewards in half for miners, the community is eagerly awaiting Bitcoin’s price reaction. During this fourth halving, each new block will yield miners 3.125 BTC instead of 6.25 BTC, further solidifying Bitcoin’s deflationary nature and reducing its supply injected into the market. Influencers like Mow believe that the halving will create a supply shock, while the emergence of spot BTC ETFs contributes to a demand shock in the market.
Bernstein researchers project a 7% drop in network hash rate after the halving, as less efficient miners exit the market due to increased revenues from ETFs. The approval of BTC and ETH ETFs in Hong Kong indicates the potential for similar moves in South Korea, Japan, and Singapore. Reports suggest that Hong Kong’s ETFs could attract up to $25 billion in capital when trading begins by April 30.
Looking ahead, traders anticipate a diverse price action in the markets, as they prepare for the bigger event and potential crashes. While some predict a minor pullback, the markets are currently extremely volatile. One reason to be bearish on Bitcoin is that the token has formed a double-bottom pattern below current levels, indicating a lot of liquidity that whales can take advantage of to execute large orders.