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Bitcoin price has struggled in the past few days as some investors start taking profits after the remarkable rally we experienced recently. The BTC price has drifted downwards to a low of $28,000, meaning it has moved into a correction. Other coins like Tron, Monero, Internet Computer (ICP), IOTA, and Woo Network have also plunged recently.
Will Bitcoin price bounce back?
It seems like some analysts believe that the current correction is temporary and that cryptocurrencies will soon bounce back. In this article, I wrote that a popular crypto analyst had predicted that BTC would soon jump to about $40,000.
In the same report, I noted that Binance’s Changpeng Zhao had hinted that Bitcoin would surge before the next halving event that will happen in the next twelve months. The argument is that BTC tends to rise before halving happens. It has done that in the past three halvings.
There are bullish catalysts for Bitcoin. For one, there is a high possibility that the Federal Reserve will start pivoting soon. Expectations are that the Fed will pause its interest rates in its May meeting followed by an extended pause.
However, as we saw during the SVB and Signature Bank collapse, threats to the American economy could come from anywhere. As such, with interest rates at the highest point in more than a decade, something can break without notice. That will lead the Fed to pivot, by hinting that it will cut rates in the future.
Bitcoin halving as a catalyst
The other key catalyst for the BTC price will be the halving event that will happen in 2024. In a note, a Bloomberg Intelligence analyst said that Bitcoin price could surge to $50,000 by April next year. He said:
“Bitcoin cycles bottom around 12-18 months prior to the halving and this cycle structure looks similar to the past ones, albeit many things have changed — while the network is vastly stronger, Bitcoin has never endured a prolonged severe economic contraction.”
A move to $50,000 means that Bitcoin needs to jump by 82% from the current level. Such a move will push Bitcoin’s market cap to over $967 billion, based on the current circulating supply of 19,354,418 BTCs. This means that Bitcoin’s market cap would jump by $435 billion.
Notably, some analysts also believe that Bitcoin price will jump to $65,000. In the same Bloomberg report, an analyst said:
“Bitcoin may once again reach a new all-time high in the future, however, it is unlikely to see the same growth as previous cycles due to increased market size and competition from other digital assets.”
Mike Novogratz, the founder of Galaxy Digital said that he believes that BTC could jump to $67,000 in the coming months. He made that statement to CNBC when Bitcoin price crossed the key resistance point at $30,000.
If these forecasts are accurate, then it means that other altcoins will be positive as well since these coins have a positive correlation with Bitcoin. In most periods, altcoins rise when Bitcoin rises and vice versa. This explains why most of them, including IOTA, Monero, and Internet Computer’s ICP have plunged recently.