Posted by Xoken.org – The crypto community remains abuzz with discussions about the upcoming halving event, despite recent market weakness. Although the consensus suggests that the halving is not yet fully priced in, the current retracement in the price of Bitcoin is seen by some as the last opportunity to buy the dip before the altcoin market takes off.
At the time of writing, Bitcoin price was trading at $64,354, marking a 4.6% decline over the last 24 hours. Despite this short-term volatility, Bitcoin has climbed higher by more than 50% year over year.
Analysts attributed Bitcoin’s pullback from its all-time high above $73,000 to around $63,000 as a brief opportunity for investors to buy the cryptocurrency at a more favorable price.
Bitcoin halving dominates discussions
The Bitcoin network is gearing up for its next halving event, which is expected to occur every 210,000 blocks, or roughly every four years. Historically, traders closely observe these events due to their direct impact on Bitcoin (BTC) and its market dynamics.
This event will reduce mining rewards 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 Bitcoins as a reward for each block added to the blockchain at the beginning of Bitcoin.
However, during the first halving, this reward was reduced to 25 Bitcoin, with subsequent halvings in 2016 and 2020 further reducing the reward to 12.5 and 6.25 BTC. This supply reduction directly impacts Bitcoin’s market supply and, consequently, its price dynamics within the broader crypto market.
Current Bitcoin price offers ‘dip buying’ opportunities
According to analysts at Bernstein, Bitcoin’s recent weakness of $10,000 from its all-time high above $73,000 to around $63,000 provides a buying opportunity.
“We believe Bitcoin’s current consolidation phase is temporary and offers a dip buying opportunity before the Bitcoin halving,” Bernstein analysts said.
In a note to clients, Bernstein described Bitcoin’s current consolidation phase as temporary, offering an opportunity for traders to reposition their risk ahead of the halving event. Analysts maintain a bullish view on Bitcoin and the entire crypto ecosystem, seeing the next 18 months as an opportunity for growth.
Bernstein has previously argued that public miner shares are the best stock equity proxy for Bitcoin’s price trajectory, especially as it heads toward its 2024-2025 cycle targets. They also predict a three-fold jump in the overall crypto market cap to $7.5 trillion by the end of 2025.
Bitcoin ETF flows remain volatile
The influence of US spot Bitcoin ETFs, such as Grayscale’s GBTC, remains an important factor in market dynamics. GBTC experienced record daily outflows of $642.5 million, culminating in net outflows of $154.4 million for the first time since March 1.
Despite the current price adjustment, the analyst maintains a positive long-term outlook for Bitcoin, predicting a cycle high of $150,000 in 2025. This optimistic projection reflects the belief that the recent price correction is a natural part of the market’s ebb and flow, which offers strategic purchasing opportunities for those looking to the future.
Overall, Bitcoin is in a retracement phase, unwinding some of its recent gains. This situation is considered by some investors as an opportunity to build or expand their Bitcoin positions.