At the time of writing, Bitcoin price is trading at $64,354, marking a 4.6% decrease over the past 24 hours. Despite this short-term volatility, Bitcoin has shot higher by more than 50% year-to-date.
Analysts attribute Bitcoin’s dip from its all-time high above $73,000 to around $63,000 as a fleeting opportunity for investors to acquire the cryptocurrency at a more favorable price.
The Bitcoin network is set for its next halving event, expected to occur every 210,000 blocks, or roughly every four years. Historically, traders closely watch the event due to its direct influence on Bitcoin (BTC) and its market dynamics.
This event will reduce the mining reward from 6.25 BTC to 3.125 BTC per block, although miners will continue to receive transaction fees for their efforts. Initially, miners received 50 Bitcoin as a reward for each block added to the blockchain at Bitcoin’s inception.
However, during the first halving, this reward was reduced to 25 Bitcoin, with subsequent halvings in 2016 and 2020 further decreasing the reward to 12.5 and 6.25 BTC, respectively. This reduction in supply directly impacts Bitcoin’s market supply and, consequently, its price dynamics within the broader cryptocurrency market.
According to analysts at Bernstein, Bitcoin’s recent $10,000 retreat from all-time highs of over $73,000 to around $63,000 presents a buying opportunity.
“We believe the current phase of Bitcoin consolidation is temporary and offers a dip buying opportunity prior to Bitcoin halving,” Bernstein analysts said.
In a note to clients, Bernstein described the current phase of consolidation in Bitcoin as temporary, which offers a chance for traders to reposition their risk before the halving event. The analysts maintain a bullish outlook on Bitcoin and the entire crypto ecosystem, viewing the next 18 months as an opportunity for growth.
Bernstein previously argued that public miner stocks are the best equity proxy to Bitcoin’s price trajectory, especially as it heads towards their 2024-2025 cycle target. They also predicted a threefold surge in the overall crypto market cap to $7.5 trillion by the end of 2025.
The influence of U.S. spot Bitcoin ETFs, such as Grayscale’s GBTC, remains a pivotal factor in the market dynamics. GBTC experienced record daily outflows of $642.5 million, culminating in a net outflow of $154.4 million for the first time since March 1.
Despite the current price adjustments, analysts maintain a positive long-term outlook for Bitcoin, predicting a cycle high of $150,000 by 2025. This optimistic projection reflects the belief that the recent price corrections are a natural part of the market’s ebb and flow, offering strategic buying opportunities for those looking towards the future.
Overall, Bitcoin is in a phase of retracement, shedding some of its recent gains. This situation is perceived by some investors as a chance to build or expand their Bitcoin bets.