Bitcoin Is Finally Out Of The Slumps, But Can It Go Further?

If you ever doubted Bitcoin’s potential and ability to recover, despite the numerous times it bounced back over the course of time, these past few weeks have probably managed to restore your faith in the flagship crypto. The current Bitcoin price and its recent performance are giving crypto enthusiasts plenty of reasons for optimism. The month of October has certainly lived up to expectations, and November hasn’t disappointed so far, either.

For the better part of 2023, Bitcoin has struggled to break above the $30K resistance level and further its appreciation journey. Now, the asset is well past this threshold, achieving a new yearly record of $35,720 (a level it hasn’t reached since May 2022), and it shows no signs of slowing down. At the time of writing, Bitcoin’s price was standing at $34,929.

 

As expected, analysts were quick to react to these developments and price predictions started pouring in. Given the markets’ known volatility and Bitcoin’s history of rise and decline cycles, people tend to be cautious and are rightfully wondering if this is going to be another short-lived surge or if the rally might continue into the following months.

No matter how positive the outlook may seem at the moment, one can’t easily forget that Bitcoin lost almost 65% of its value in 2022, falling from a staggering high of $68,789. And this year hasn’t been without challenges either, with the regulatory crackdown on the industry intensifying all over the world.

So, is it too soon to talk about a new bull market or is Bitcoin indeed on the path to recovery? Let’s see what the experts have to say about it.

$45,000 by the end of the year

We’ve got two more months left until the end of the year, and many hope that Bitcoin will end this chapter on a high note. As it’s been proven in the past, things can change dramatically from one day to another, with high volatility being a constant in the cryptocurrency market. So, two months is a lot in crypto time and plenty of things can happen, good or bad.

However, experts at Matrixport, a crypto financial services platform, foresee a positive year-end performance for Bitcoin, going as far as stating that the original crypto might hit $45,000 until the clock strikes 12 on New Year’s Eve. The figure was also mentioned in an earlier report published by the firm in January 2023, and they seem to stand by their initial forecast.

Matrixport’s in-house models also helped them predict the rising values registered by Bitcoin in October, so it wouldn’t be all that surprising for the company to be right on the money this time as well. With Bitcoin currently trading at $34,929, it would take a 30% increase for the asset to reach the foretold level. 

A halving-induced bull run 

The halving remains one of the most highly anticipated events in Bitcoin’s evolution and the industry, given its undeniable influence on Bitcoin’s price performance which is bound to reverberate across the entire market.

For those who are not familiar with the concept, the halving is an event that cuts Bitcoin mining rewards in half every four years or so, in order to ensure scarcity and maintain healthy supply-demand dynamics. Historically, it has been noted that the Bitcoin price tends to rise in the months leading up to the halving, evolving into a full-blown bull run for the crypto right after.

Although it’s difficult to calculate the exact date of the halving since it all depends on the number of blocks being mined, the next event is expected to take place in April 2024. Many believe that the current price appreciation is a direct result of the incoming Bitcoin halving.

But how high is the king of crypto going to rise this time? According to BitQuant, a crypto market maker and liquidity provider for digital assets and exchanges, Bitcoin is going to experience further appreciation in the months prior to the halving, a prediction that falls in line with many other expert forecasts.

But that’s not all that BitQuant envisages in Bitcoin’s future. They also stated that the coin might reach a new record high before April 2024, and then hit a post-halving peak around the $250K mark. Nevertheless, the crypto service provider tempered this optimistic outlook with predictions of four potential pullbacks until Bitcoin could reach the anticipated highs. 

On the path to $1 million

Although these forecasts might seem a bit extreme given current values, there are others who believe Bitcoin can go much further than that. There’s been a lot of talk lately about Bitcoin reaching $1 million at one point in the future. No one can give a precise date for this historical milestone, but there are more than a few voices supporting this viewpoint.   

Cathie Wood, founder, CEO and chief investment officer at ARK Invest, an investment management firm based in St. Petersburg, Florida, and Arthur Hayes, co-founder and former CEO of cryptocurrency exchange BitMEX have both spoken on the topic, stating there are clear signs indicating that Bitcoin is already on the path to reaching $1 million, fueled by macroeconomic factors. According to Hayes, the shortcomings of the global financial system and people’s increasing lack of trust in the bond market and fiat money could propel Bitcoin on this trajectory.

Bottom line

Bitcoin is once again riding the popularity trend due to ongoing appreciation over the past few weeks, instilling hope and optimism in a market that has endured the longest and harshest winter to date. However, even if all signs point towards a potential recovery, it’s important to bear in mind that digital currencies, Bitcoin included, remain highly volatile assets, so these price forecasts may or may not come true. In the end, only time can tell if Bitcoin is going to surge or slump.