The enigmatic world of Bitcoin continues to captivate investors with its price fluctuations. However, recent analysis by Cryptorphic, a prominent cryptocurrency analyst, suggests that the future may be brighter than recent declines would indicate.
Their predictions? Bitcoin will reach a staggering $156,000 by May 27, 2025.
The halving effect: a historic catalyst
Cryptorphic’s predictions are based on a historical phenomenon known as halving. Every four years, the number of Bitcoins rewarded for mining modern blocks is halved. Theoretically, this reduces the supply of modern coins entering the market, potentially increasing the price of existing ones.
His analysis examines past halvings and reveals a fascinating trend. After the first halving in 2012 Bitcoin price skyrocketed to a staggering 8,300%. The second halving in 2016 saw a more modest but still impressive gain of 288%. The last halving in 2020 resulted in a gain of 540% for the year.
#Bitcoin could reach $156,000 by May 27, 2025!
These green boxes represent the price action after #BTC halves. We have never seen a red year after halving.
Bitcoin halvings are significant events. Here is the percentage raise in Bitcoin price one year after each halving… pic.twitter.com/QEmNN8OuP2— Cryptorficzny (@Cryptorficzny1) May 27, 2024
Golden ticket or fool’s gold?
After its fourth halving in April last year, Cryptorphic predicts a potential price raise of almost 130% in the next year. This translates into a price ranging from $115,000 to $156,000.
Despite the bullish outlook, the analysis takes current near-term volatility into account. Bitcoin is currently trading below its peak, reflecting a recent decline of 5%. However, Cryptorphic identifies a technical indicator, an “inverse head and shoulders” pattern, suggesting a potential price breakout.
A broader view of the market
The analyst’s perspective is not afraid to present contrasting points of view. Others are taking a more nuanced approach, expressing cautious optimism about the short-term trajectory. They acknowledge the failing bear scenario and believe that the market may be in an earlier bullish phase compared to Cryptorphic’s predictions.
This suggests the potential for further gains before 2025, although both analysts emphasize the importance of a balanced approach to risk management.
Over the last year, Bitcoin increased by 144%, showing significant growth dynamics. This impressive performance allowed it to outperform 58% of the top 100 crypto assets and also surpass Ethereum’s gains. Such forceful growth highlights the forceful market position of this asset and investor confidence.
Currently, the asset is trading above its 200-day elementary moving average, which indicates a continuing upward trend. Additionally, high liquidity, supported by significant market capitalization, further increases its attractiveness for investors.
Featured image from Revolutionized, chart from TradingView
