According to U.Today, Julio Moreno, CryptoQuant's head of research, has highlighted a pattern in Bitcoin's price performance during halving years that could lead to a significant rally in the final months of this year. Moreno noted that Bitcoin's price performance in 2024 has been remarkably similar to that of 2016 and 2020, both halving years that saw substantial price increases.
Bitcoin halving events, which occur approximately every four years and reduce the reward for mining new blocks by half, have historically been followed by significant price increases. Moreno pointed out that if Bitcoin's price increases, it will likely be in Q4 of 2024. Bitcoin experienced its most recent halving event on April 19, 2024, reducing the block reward for miners from 6.25 BTC to 3.125 BTC. This historical trend suggests a potential price increase in the coming months.
At the time of writing, Bitcoin was up 0.43% in the last 24 hours to $58,423, recovering after two consecutive days of decline. Bitcoin fell nearly 5% to reach lows of $56,120 in Thursday's trading session, retracing nearly all gains from the past week. Much of the decline occurred after the latest July U.S. consumer price index (CPI) statistics were released late Wednesday. July's CPI rose by 2.9% year on year, as forecast, and fell below 3% for the first time since 2021. U.S.-listed spot Bitcoin ETFs had net outflows, with Grayscale's GBTC being the most affected.
Cryptocurrencies have been sensitive to U.S. economic data in recent months. If macroeconomic uncertainty persists, some traders predict Bitcoin's price might drop near $55,000 in the short term before a major rally. Julio Moreno believes there are still risks of a correction in the short term, as the Bull-Bear Market Cycle Indicator is currently hovering in the 'bear' phase. As Q4, 2024 approaches, the market is eagerly watching for signs of a potential rally, if the historical trend holds. However, it should be noted that past performance might not always be indicative of future results.
