Bitcoin Halving: Analysts Predict a Future Where BTC Could Surpass Gold by $500,000.
With the upcoming April halving approaching, Bitcoin is expected to become even more scarce, sparking optimistic predictions from analysts. The renowned technology analyst and creator of the stock flow model known as “PlanB” recently claimed that “Bitcoin will be scarcer than gold and real estate” after the halving.
Despite these optimistic sentiments, PlanB tempered expectations by suggesting that Bitcoin’s market capitalization, currently below $1 trillion, may not surpass gold’s $10 trillion even with increased scarcity.
Profit Halving and Market Capitalization Insights
Expectations of increased scarcity have sparked BTC price predictions, but PlanB remains cautious about Bitcoin surpassing gold, whose market capitalization currently stands at less than $10 trillion. Despite its scarcity, he speculates that Bitcoin’s market cap, currently less than $1 trillion, may never reach the level of gold.
It looks like this: $BTC We are printing a bullish pennant. Let’s wait for a breakout (it is currently threatening a breakout with a downward trend), and if all goes well, we can see at least 45550. #Bitcoin $BTCUSD pic.twitter.com/QS0GXB5XVQ
— CryptoHamster (@CryptoHamsterIO) February 4, 2024
To gauge a potential price surge, a basic calculation of a market capitalization of $10 trillion divided by 20 million coins suggests a Bitcoin price exceeding $500,000. However, the timing of halving profits is an important factor and is generally recognized one year after the event. This historical context tempers expectations of immediate, material price increases after April.
Also Read: Bitcoin Halving 2024: Guide to Before, During and After Steps
Bitcoin’s Resilience: Lowest Price and Near-Term Outlook
On February 4, PlanB highlighted Bitcoin’s 200-week moving average currently sitting at $31,000, referencing the S2F model. Based on historical data, the analyst emphasized that Bitcoin has never fallen below this 200-week moving average, asserting: “$31,000 could be an absolute low and Bitcoin may never see $31,000 again.”
Short term analysis from analysts including: “Crypto Hamster” Indicates a bullish pennant chart pattern with a potential breakout threat on the downside. However, in an optimistic scenario, the price could rise to $45,550.