The cryptocurrency market is witnessing a rally not seen in over 20 months, with Bitcoin crossing the $41,000 mark. The gain, not seen since April 2022, was driven by continued positive sentiment among traders, fueled by the possibility of approval of a Bitcoin Exchange-Traded Fund (ETF) in the United States.
According to the Bitcoin price index of Livecoinsfor which the digital currency is traded R$205 thousand in Brazil, with an increase of 148% in the year.
Despite the entire year being bullish, the recent momentum began in mid-October, coinciding with news of the potential approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC). In less than a month, the digital currency has increased in value by more than $10,000.
Christmas rally
Although Bitcoin’s highest price was recorded over two years ago in November 2021, reaching $69,789, its future prospects look promising.
Analysts at Matrixport have suggested that on the eve of the next Bitcoin halving, Bitcoin’s value could rise to $125,000 by the end of 2024.
Similarly, Bernstein experts predict that Bitcoin’s price could reach $150,000 by early 2025.
According to analyzes from the renowned cryptocurrency reporting provider, Bitcoin could be the $56,000 by the end of 2023.
The optimistic forecast is inspired by Wall Street’s famous maxim and is backed by Isaac Newton’s third law of motion, which points to momentum in the bull market unless an external force intervenes significantly.
The phenomenon has already been dubbed the “Bitcoin Santa Claus Rally,” given that historically the cryptocurrency’s peak usually occurs in December. The crucial phase for this rally runs from the beginning of November to the end of the year.
Factors such as the optimism generated by the launch of Bitcoin ETFs, speculation about the US central bank’s monetary tightening cycle and the search for safe assets contribute to this prediction.
“When Bitcoin rose at least +50% in late October, there was an average of 78% chance that it would rise further later in the year. Bitcoin rose another 68% by the end of the year on seven of the previous nine occasions.”Matrixport said in October.
Bitcoin’s track record provides additional support for Matrixport’s predictions. In seven of the last twelve years, Bitcoin has posted gains of at least 100% in the first ten months.
Following this pattern, digital assets saw an average increase of 65% in the last two months of the year i.e. November and December.
The recent rally reflects renewed confidence in the cryptocurrency market and growing institutional acceptance and interest in digital assets as a legitimate form of investing.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
