As we near the end of the Bitcoin halving event, market forecasts are becoming increasingly volatile, influenced by global geopolitical tensions and the latest U.S. Consumer Price Index (CPI) data. Edouard Hindin of Tyr Capital recently projected that Bitcoin’s price could escalate to $120,000 shortly, despite some recent declines.
Will Bitcoin Reach $120,000?
Amid current uncertainties, many traders and investors view Bitcoin as a prime asset for wealth preservation. Edouard Hindin posits that global tensions could drive Bitcoin’s value to $120,000 soon as individuals look for safe havens for their capital.
Contrastingly, 10x Research, known for accurately predicting Bitcoin’s 2022 low and a pre-halving price surge, has adopted a bearish stance. On April 15, 2024, they released a report titled “We sold everything last night,” as per Todayq News.
Over the past weekend, the crypto market experienced significant losses due to escalating tensions between Iran and Israel and preemptive sell-offs before the Bitcoin halving scheduled for April 20, 2024. Major cryptocurrencies like Ethereum, Solana, and Cardano saw declines up to 18%. This bearish trend extended into Tuesday, April 16, 2024, amid worries over Israel’s potential responses to Iranian attacks.
Diminished Investor Interest in the Market
Investor sentiment has notably cooled, as evidenced by a net outflow of $58 million from BTC ETFs on April 16, 2024, marking the third consecutive day of outflows. This trend underscores a growing investor apprehension about a potential market downturn. Notably, major players like Grayscale Bitcoin Trust (GBTC) and BlackRock iShares Bitcoin Trust (IBIT) saw daily flows dip below $100 million. Meanwhile, the ARK 21Shares Bitcoin ETF (ARKB) recorded an outflow of $12.9 million after several days of inactivity.
Experts suggest that Bitcoin’s immediate performance will be crucial in setting the tone for the broader cryptocurrency market in the upcoming weeks. The recent downturn in U.S. stock markets has heightened global investor caution, with the next market moves being pivotal in determining the short-term direction of both the stock and crypto markets.
Not a financial advice.