Bitcoin could go up to $63K, Mining rewards are waiting

According to historical statistics, Bitcoin often reaches its bottom and begins to rise 15 months before the halving.

Warren Buffett, a renowned investor, reportedly remarked, “Be greedy when others are scared and fearful when others are greedy.”

Bitcoin price hits late-2020 levels as crypto market suffers fresh
Image Credit: Getty Images, Bitcoin price hits late-2020 levels as crypto market suffers fresh.

The battered bitcoin (BTC) could soon find relief and rally to $63,000 by March 2024, when the cryptocurrency is likely to undergo mining reward halving, a programmed code designed to slow the rate of supply expansion by 50% every four years. Perhaps now is the time to be greedy in the cryptocurrency market.

Bitcoin price hits late-2020 levels as crypto market suffers fresh.

Markus Thielen, head of research and strategy at crypto services provider Matrixport, which has $10 billion in assets under control, made that most recent prediction.

Screenshot 2022 10 28 at 4.22.27 PM
Bitcoin price hits late-2020 levels as crypto market suffers fresh.

The optimistic forecast is predicated on the idea that bitcoin’s price would continue to rise, as it did in the months before the July 2016 and April 2020 halvings. On both times, bitcoin had positive winds 15 months before the halves and traded 39% higher than it did two years prior to the halving.

In light of this, if history is any indication, bitcoin’s fortunes may begin to shift starting next month and soar to $63,160 by March 2024, when it would sell for 39% more than its March 2022 price of $45,538.

Bitcoin could go up to $63K,

Prices began to rise 15 months before the subsequent halving (in November 2022), and they typically conclude 39% higher than where they began.

This suggests that bitcoin will trade at around $63,160 by March 2024 (March 2022 at $45,538*(1+39%) = $63,160),” Thielen noted in the most recent Matrix on Target paper. As a result of the economic penalties, Russia has also modified its position. China and President Putin are looking for a USD replacement.

Future developments cannot be forecasted based on past performance. Nevertheless, history frequently repeats itself, and the long-term prognosis may improve soon. Recent comments from Fed officials suggested that the rate of tightening from December would be slower. In addition, Thielen claims there are indications that China is relaxing its attitude toward cryptocurrencies.

Bitcoin price hits late-2020 levels as crypto market suffers fresh.
Image Credit: Getty Images. Bitcoin price hits late-2020 levels as crypto market suffers fresh.

As this only occurs twice every 10 years, Thielen continued, “the timing of Hong Kong potentially allowing retail crypto trading to establish itself as a crypto center shortly shows that China is adjusting its posture towards crypto.”

“A new multi-year crypto bull market may be beginning, along with Saudi Arabia, which aspires to join the BRICS countries and is very interested in upgrading their economy into Web3,” Thielen noted.

Three reward halvings have taken place for bitcoin thus far. Following the third halving on May 12, 2020, prices surged from $8,800 to $69,000 in just 18 months.

The initial plan was for the fourth halving to occur in May 2024. The reward halving is now anticipated to occur in March 2024, however, as a result of the bear market’s dramatic increase in the hash rate, or processing power committed to mining blocks.

The per-block reward provided to miners will decrease from 6.25 BTC to 3.12 BTC following the event, lowering the inflation rate of the coin to 1.1%. Blocks are mined and transactions are verified by Bitcoin miners in exchange for payments made in BTC.

In contrast to the ever-growing fiat money supply, the cryptocurrency’s set monetary policy of halving supply expansion every four years. Many people, notably business intelligence company MicroStrategy, have been inspired by this to use bitcoin as a reserve asset.

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