Identify the Bitcoin Bottom. According to Pantera Capital, Bitcoin may reach $148,000 during the next halving cycle by 2025. In a recent report, the research group said the coin may have already reached its low in 2022. As of now, the price of Bitcoin is over $26,000, having increased by more than 56% in 2023. Research firm Pantera Capital predicts that when Bitcoin’s halving cycle starts next year, its price may rise to almost five times its present value by 2025.
The firm’s analysts, who retain an optimistic forecast for the most prominent cryptocurrency in the world by market capitalization, said in a report on Tuesday that there is plenty more upside.
The strategists said that under such standards, the price of bitcoin ought to have fallen by December 2022. According to Satoshi Nakamoto’s original whitepaper, halving reduces the incentive that cryptocurrency miners get every four years for producing a scarcity effect.
By April 2024, when the next scheduled halving occurs, miners will get rewards of 3.125 Bitcoin for each block instead of 6.25 Bitcoin.”If history were to repeat itself,” the investigators said, “the next halving would see bitcoin rising to $35k before the halving and $148k after.” Although it has dropped almost 10% in the last month, Bitcoin has increased in value by more than 56% in 2023.
Blockchain – Might It Be the Answer to Redefining Finance
Over the last several decades, technology has advanced at a pace our predecessors could not have predicted, leading to advances that humanity has seen firsthand. Technology has advanced quickly, from the earliest computers to cell phones that are now ubiquitous and attached to people’s hands. However, nowhere is this change more evident than in contemporary finance.
Banks swiftly switched from pen and paper to printers as computers became more accessible, inexpensive, and helpful. Later, email and networked software that tracked the movement of currencies worldwide also replaced printers. Nobody anticipated that the 2008 experiment with digital money Bitcoin would lead to a whole new kind of financial revolution. We refer to this technology as blockchain.
blockchain – breaking money
More than ever, inflation, interest rates, and economic uncertainty influence the value of those fancy pieces of paper we use to make purchases, causing the money markets to experience severe ups and downs worldwide. Then, as if by magic, blockchain appears, and everyone in the banking industry starts to pay attention.
A blockchain is merely a brilliant digital accounting system. Instead of storing all your documents in one location, the blockchain functions as a digital network that makes all of its data available to all users—not awed? Built on top of this novel technology, Bitcoin unintentionally proved the viability of a new kind of commerce that would come to be known as “cryptocurrencies.” Most of us have heard about cryptocurrencies, and the number of users is rapidly approaching 500 million. Cryptocurrency benefits significantly from this, but what about the regular person?
Interestingly, central banks have begun converting their national currencies to digital currency, often using blockchain technology. According to the World Economic Forum, eleven nations have already introduced digital currencies entirely or via trial projects.
It doesn’t matter whether these nations decide to make blockchain the foundation of their new CBDCs (Central Bank Digital Currency), as the rise of successful blockchain-based cryptocurrencies has pushed these nations to take action and ushered in an era of digital currency.
Use smart contracts
While most people praising blockchain technology mention smart contracts in passing, they are perhaps one of the most innovative aspects of the whole system. To put it simply, a smart contract is a contract that is self-executing rather than requiring legal assistance to ensure that the terms are followed. In essence, the provisions of the contracts are encoded into the blockchain so that, upon fulfillment of all predetermined requirements, they will automatically execute.
This significantly affects industries, including intellectual property rights, real estate, and supply chain management. However, let’s look at a real-world example already used extensively: real estate. Let’s take an example where you want to rent out your residence. This used to result in a ton of paperwork and hassles.
However, you can now easily convert your house into a non-fungible token, or NFT. I get what you’re thinking: isn’t an NFT that strange device geeks use to purchase pictures of themselves? Both yes and no. You are essentially tokenizing real-world assets when you create an NFT. In another way, you establish a digital receipt for everything you possess.
A future of blockchain finance
Blockchain offers numerous advantages, including preserving data integrity and transaction confidence. Its inherent security features effectively mitigate cyberattacks, providing a robust layer of protection. However, the examples above should clarify the issue.
Despite all that blockchain has accomplished globally, the banking sector might see a radical change. Blockchain can transform finance and sculpt a more equitable and productive. As innovators and decision-makers, the global economy continues to investigate its possibilities.
Bitcoin death cross
On Tuesday, the 50-day moving average of bitcoin suffered a death cross, closing below the 200-day moving average. Since January 2022, it has been the first death cross for Bitcoin.
A death cross happens when the price of an asset falls below its long-term average on its near-term moving average. For many technical analysts, it’s a warning that an investment may continue to decline. According to records, the average decline in bitcoin price occurred the week after a death cross, as per Dow Jones market data. The cryptocurrency fell 51.7% six months after the final death cross of Bitcoin in 2022.
A bottom is coming?
| Experts at QCP Capital believe that based on chart analysis and several impending crypto and macroeconomic events. Bitcoin may achieve a cyclical bottom by mid-to-late October. Given that statistics revealed that U.S. consumer prices increased by 0.6% in August—the most significant rise. |
| In 14 months, next week’s Federal Reserve policy meeting may be more hawkish than investors had anticipated, according to QCP analysts. Nevertheless, there is a 97% likelihood that the U.S. central bank will maintain. According to Fed futures traders, its benchmark interest rate is at its next meeting. |
FTX sale
On Wednesday, a court-approved bankrupt cryptocurrency exchange FTX’s sale of its assets. Which it said were worth over $3.4 billion to pay off its creditors. A prior court filing noted that most interests are in Solana SOLUSD, 3.08%, and bitcoin. However, some investors fear the impending asset sale may negatively impact cryptocurrency values. FTX has decided to restrict its token sales to $100 million weekly. The exchange’s strategy calls for raising the cap to $200 million for each coin.
As pointed out by Greg Moritz, co-founder and chief operating officer of Alt-Tab Capital, that sum is negligible in comparison to the trading volume of the whole crypto market. According to Moritz, the daily trading volume of bitcoin often falls between $10 billion and $20 billion.
Moritz states that the natural effect of the possible FTX liquidation on the cryptocurrency market “is likely to be quite small overall and take place over months.” But, due to the idea, many coins are already under downward pressure. He said this is mainly because the retail cryptocurrency market reacted out of fear rather than reason after failing to comprehend FTX’s proposition properly.
Conclusion:
Pantera Capital predicts that Bitcoin’s price may reach $148,000 during the next halving cycle by 2025 despite its current value of over $26,000. The firm’s analysts predict that the price of Bitcoin may have fallen by December 2022 due to the halving cycle. Blockchain technology, built on Bitcoin, could be the answer to redefining finance, as central banks convert their national currencies to digital currency, often using blockchain technology. The rise of successful blockchain-based cryptocurrencies has pushed these nations to adopt digital currencies.
Blockchain technology and brilliant contracts have the potential to transform finance and create a more equitable global economy. These contracts automatically execute upon fulfilling predetermined requirements, impacting industries like real estate and supply chain management. However, the banking sector may see a radical change due to its potential to transform finance. Bitcoin’s death cross and FTX’s sale of assets may also impact the cryptocurrency market. Despite these developments, the potential impact on the market is likely to be small and take place over months.
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FAQs
One of the best cryptocurrencies for 2023 is Avalanche, which has a novel consensus mechanism called Avalanche consensus that allows for inexpensive, safe, and quick transaction processing.
First, this week, Standard Chartered restated an April forecast that the bitcoin price will reach $100,000 by the end of 2024. According to the bank, this will be determined by how many ETFs are approved. Based on statistics from CoinDesk, it would indicate an approximately 160% increase from Friday’s price of around $38,413.
But if 2022 was a challenging year for Bitcoin, 2023 hasn’t been too horrible either. This year, the price of Bitcoin has increased by nearly 150%. Although it’s hard to predict where Bitcoin will go from here, one more event might raise the currency’s price early next year.