The Bitcoin halving is just 34 days away and it is expected to significantly reduce the rate at which new Bitcoin is created. The crypto market does not seem to have fully priced in this event, according to Basile Maire, co-founder of D8X decentralized exchange. He believes that there is currently more demand for Bitcoin and less supply, which should lead to price increases. Bitcoin recently surpassed $71,000 and there are expectations that it could reach $100,000 by May, based on Bitcoin futures data.
Maire also mentioned that the upcoming presidential election in the United States could have a significant impact on Bitcoin’s price trajectory. The election is expected to be a positive catalyst for the crypto market, as policymakers will likely want to ensure that traditional markets do not crash. This connection between traditional markets and cryptocurrencies has been strengthened by the introduction of exchange-traded funds (ETFs) that track Bitcoin. Despite some volatility, the overall market outlook for Bitcoin is currently very positive.
The influx of money into U.S. spot Bitcoin ETFs has played a key role in Bitcoin’s recent rally to new highs. These ETFs are purchasing 10 times more Bitcoin daily than miners are producing, according to Sergei Gorev, a risk manager at fintech platform YouHodler. The total on-chain holdings of spot Bitcoin ETFs reached $60.5 billion on March 13, and if inflows continue at the same rate, they are projected to absorb 8.82% of the Bitcoin supply on an annual basis.
The upcoming Bitcoin halving is not fully priced in by the crypto market, indicating that there may be room for further price increases. The U.S. presidential election is expected to have a positive effect on the crypto market, and the inflows into spot Bitcoin ETFs have been a significant driver of Bitcoin’s recent rally.
The demand for Bitcoin is only going to increase after the halving!
The overall market outlook for Bitcoin is looking very positive! 📈