There's a lot of buzz in the crypto world about Bitcoin ($BTC ) potentially reaching $100K by the end of this year. But is it possible? If we look at Bitcoin's past halving cycles, the answer might just be âyes.â Plus, with a combination of major economic events and bullish factors, the timing looks perfect for a breakout. Letâs break it down for you.
Bitcoin Halving Cycles: What Are They and Why Do They Matter?
A Bitcoin halving is when the reward miners get for processing transactions is cut in half, which happens roughly every four years. After each halving, the BTC price tends to consolidate (stay flat) for around 6 months, and then the price typically takes off.
Hereâs what happened before:
2016: After the halving, BTC stayed flat for 161 days, then shot up in price.
2020: Bitcoin consolidated for 175 days before a big breakout.
2024: Weâve now been in this consolidation phase for 161 days, meaning a breakout could happen soonâpossibly within the next few weeks.
Why Bitcoin Could Break Out Soon
Itâs not just historical patterns that suggest a price surge. A combination of global economic factors and market conditions are lining up for a potential Bitcoin rally:
China is printing $280 billion to boost its economy, and some of this liquidity could flow into assets like Bitcoin.
The Federal Reserve has started cutting interest rates, which usually drives money into alternative investments like crypto.
The Bank of Japan (BOJ) has also eased up on rate hikes, which is another bullish signal for global markets.
Bitcoin ETFs have started buying up Bitcoin again, signaling renewed institutional interest.
Russia is planning to use crypto for cross-border payments by November, potentially increasing global crypto adoption.
The global M2 money supply (the total amount of cash and liquid assets in the world) has hit an all-time high of $107 trillion, meaning thereâs more money circulating that could find its way into Bitcoin.
Bitcoin on Exchanges Is at a Low
One more reason to be optimistic: Bitcoin flowing to exchanges has reached a very low level. This means fewer people are selling, and when selling pressure is low, it often leads to price increases.
The Market Hasnât Priced In All the Bullish Factors
Even with all these positive signals, the market still hasnât fully reacted to them. As these factors start to play out, we could see a new all-time high (ATH) for Bitcoin, and it might just hit that $100K target by the end of the year.
Bottom line:
History, global economics, and crypto market trends are aligning for a potential Bitcoin breakout. If everything lines up, we could be looking at a $100K Bitcoin in Q4 2024.
