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The cryptocurrency Bitcoin hit an all-time high of over $73,700 in March 2024 but has since been trading in a range of approximately $59,000 to $72,000. The cryptocurrency has fallen 11.4% past month, probably due to a higher greenback.
The climb to the record high in March was because of the approval and launch of spot bitcoin exchange-traded funds (ETFs) in the United States in January. These ETFs have attracted net inflows of around $14.41 billion to date, according to a recent report by CCData.
Bitcoin Halving Cycle Explained
Bitcoin is yet to touch the peak of its current appreciation cycle and is expected to top its all-time high this year, according to the CCData research report released on Tuesday.
Bitcoin cycles refer to periods during which the digital currency reaches a new record high, then declines, entering a bear market or "crypto winter." Three such cycles have occurred since Bitcoin's inception, typically following a similar pattern hovering around the halving event.
During halving, the reward for Bitcoin miners is halved, reducing the supply of new Bitcoin entering the market. IThe last halving event took place this year in April.
Historically, the halving event leads up to a period of price gains lasting around 366-548 days before creating a cycle top. Normally, each halving produces a longer cycle than the prior one as the asset class matures and volatility lessens, per CCData.
However, in the current cycle, Bitcoin reached its latest record high before the halving event, thanks to the launch of U.S. ETFs. The historical timeframes for expansion are still in place, following the most recent halving.
Sideways Trading Expected Ahead for Bitcoin in the Third Quarter?
CCData’s report noted that there has been a decline in trading activity on centralized exchanges for nearly two months after the halving event in previous cycles. The trend is also being noticed in the current cycle. This suggests the possibility of further price expansion into 2025.
Analysts noted that institutional participation in the current cycle has altered previous trends. Low trading activity is expected in the third quarter, indicating more sideways movement for Bitcoin trading in the near term.
Despite the current sideways action, CCData believes Bitcoin will surpass its previous all-time highs before the end of the year. The anticipated launch of an Ethereum ETF in the United States is expected to bring about more capital, liquidity and demand to the asset class (read: Bitcoin ETFs to Gain as SEC Approves Ether ETFs).
Thomas Perfumo, head of strategy at cryptocurrency exchange Kraken, told CNBC that market cycles normally peak 12 to 18 months after a Bitcoin halving. However, Perfumo did not miss mentioning that the current cycle has not yet witnessed the same level of volatility or rapid run toward all-time highs that were noticed in previous peaks.
Image: Bigstock
Time to Buy the Dip in Bitcoin ETFs?
The cryptocurrency Bitcoin hit an all-time high of over $73,700 in March 2024 but has since been trading in a range of approximately $59,000 to $72,000. The cryptocurrency has fallen 11.4% past month, probably due to a higher greenback.
The climb to the record high in March was because of the approval and launch of spot bitcoin exchange-traded funds (ETFs) in the United States in January. These ETFs have attracted net inflows of around $14.41 billion to date, according to a recent report by CCData.
Bitcoin Halving Cycle Explained
Bitcoin is yet to touch the peak of its current appreciation cycle and is expected to top its all-time high this year, according to the CCData research report released on Tuesday.
Bitcoin cycles refer to periods during which the digital currency reaches a new record high, then declines, entering a bear market or "crypto winter." Three such cycles have occurred since Bitcoin's inception, typically following a similar pattern hovering around the halving event.
During halving, the reward for Bitcoin miners is halved, reducing the supply of new Bitcoin entering the market. IThe last halving event took place this year in April.
Historically, the halving event leads up to a period of price gains lasting around 366-548 days before creating a cycle top. Normally, each halving produces a longer cycle than the prior one as the asset class matures and volatility lessens, per CCData.
However, in the current cycle, Bitcoin reached its latest record high before the halving event, thanks to the launch of U.S. ETFs. The historical timeframes for expansion are still in place, following the most recent halving.
Sideways Trading Expected Ahead for Bitcoin in the Third Quarter?
CCData’s report noted that there has been a decline in trading activity on centralized exchanges for nearly two months after the halving event in previous cycles. The trend is also being noticed in the current cycle. This suggests the possibility of further price expansion into 2025.
Analysts noted that institutional participation in the current cycle has altered previous trends. Low trading activity is expected in the third quarter, indicating more sideways movement for Bitcoin trading in the near term.
Despite the current sideways action, CCData believes Bitcoin will surpass its previous all-time highs before the end of the year. The anticipated launch of an Ethereum ETF in the United States is expected to bring about more capital, liquidity and demand to the asset class (read: Bitcoin ETFs to Gain as SEC Approves Ether ETFs).
ETFs in Focus
ETFs like Grayscale Bitcoin Trust (GBTC - Free Report) , iShares Bitcoin Trust (IBIT - Free Report) , Fidelity Wise Origin Bitcoin Fund (FBTC - Free Report) , ProShares Bitcoin Strategy ETF (BITO - Free Report) , ARK 21Shares Bitcoin ETF (ARKB - Free Report) and Bitwise Bitcoin ETF Trust (BITB - Free Report) should be closely tracked amid the aforementioned analyst views.
When Will Cycle Peak Happen?
Thomas Perfumo, head of strategy at cryptocurrency exchange Kraken, told CNBC that market cycles normally peak 12 to 18 months after a Bitcoin halving. However, Perfumo did not miss mentioning that the current cycle has not yet witnessed the same level of volatility or rapid run toward all-time highs that were noticed in previous peaks.