The enigmatic world of Bitcoin continues to captivate investors with its price fluctuations. However, a recent analysis by Cryptorphic, a leading crypto analyst, suggests that the future could be brighter than recent dips suggest.
Their prediction? Bitcoin will reach a staggering $156,000 on May 27, 2025.
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The halving effect: a historical catalyst
Cryptorphic’s prediction depends on a historical phenomenon known as the halve. Every four years, the number of Bitcoins rewarded for mining new blocks is halved. This in theory reduces the supply of new coins coming to the market, potentially driving up the price of existing coins.
His analysis examines previous halvings and reveals a fascinating trend. After the first halving in 2012 Bitcoin’s price rose by an astonishing 8,300%. The second halving in 2016 saw a more modest but still impressive increase of 288%. The most recent halving in 2020 resulted in a 540% increase within a year.
#Bitcoin could reach $156,000 by May 27, 2025!
These green boxes represent the price action afterward #BTC halves. We have never seen a red year after a halving.
Bitcoin halvings are significant events, here are the percentages of Bitcoin’s price increase one year after each halving… pic.twitter.com/QEmNN8OuP2— Cryptorphic (@Cryptorphic1) May 27, 2024
A golden ticket or fool’s gold?
After the fourth halving last April, Cryptorphic predicts a potential price increase of almost 130% by next year. This translates to a price tag of somewhere between $115,000 and $156,000.
Despite the bullish outlook, the analysis acknowledges the current near-term volatility. Bitcoin is currently trading below its peak, which reflects a recent 5% dip. However, Cryptorphic identifies a technical indicator, the ‘reverse head and shoulders’ pattern, which indicates a possible price breakout.
A broader market vision
The analyst’s perspective does not shy away from presenting contrasting points of view. Others are taking a more nuanced approach and expressing cautious optimism about the short-term trajectory. They acknowledge the diminishing bearish scenarios and believe the market is in an earlier bullish phase compared to Cryptorphic’s forecast.
This suggests the potential for further gains even before 2025, although both analysts emphasize the importance of a measured approach to risk management.
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Last year, Bitcoin is up 144%, showing significant upward momentum. This impressive performance has seen it outperform 58% of the top 100 crypto assets, surpassing Ethereum in gains. Such a robust increase underlines the asset’s strong market position and investor confidence.
Currently, the asset is trading above its 200-day moving average, indicating a continued bullish trend. Moreover, its high liquidity, supported by a significant market capitalization, further increases its attractiveness to investors.
Featured image of Revolutionized, chart from TradingView