Since its April 2024 halving, Bitcoin has rocketed more than 33%. The digital asset’s unique scarcity mechanism. This impressive rise is fueled by blooming institutional demand, and the digital asset’s unique scarcity mechanism. This performance has ignited conversations among financial analysts about whether Bitcoin has the potential to hit new heights, potentially going over $90,000. Market observers are closely watching how U.S. Federal Reserve monetary policy decisions and global economic tensions could further influence Bitcoin's trajectory.
This 2024 halving event reduces Bitcoin’s block reward from 6.25 BTC to 3.125 BTC per mined block. This adjustment is essential for ensuring the cryptocurrency’s scarcity. This, along with massive institutional demand, is creating a perfect storm of market conditions. Firms like Strategy and Tether have become more common in the market, providing liquidity and increasing demand.
Enmanuel Cardozo is a market analyst at Brickken. He argues that institutions are in fact doing a very much greater harm to the market than they have in earlier cycles. According to Bitget’s chief operating officer Vugar Usi Zade, institutional demand is increasing. He believes this, strengthened by halving-induced scarcity, may be enough to drive Bitcoin’s price past $90,000.
And the global economic picture, especially the U.S.-China trade war, is adding to that uncertainty. Domestic circumstances aside, the U.S. Federal Reserve’s monetary policy decisions can’t be understated. A potential interest rate cut by the U.S. Federal Reserve in May or June could inject more liquidity into the system, potentially boosting Bitcoin's price.
Up until now, Bitcoin’s market cycles have averaged about four years in length. Based on cycles gone by, Cardozo projects the market won’t bottom out until approximately Q3 2025. He expects a follow-up peak in mid-2026. He opines that we may see such milestones come much more quickly this time around. This is due in part to greater liquidity and a more developed market.
Ever since the last halving, Bitcoin’s price has been on a pretty frenetic overall pace. This extreme surge indicates a serious change in market conditions. This rapid buildout points to a shift in the once reliable four-year market cycle that may be playing out.
