According to one analyst, Bitcoin‘s price surge past the $52,000 mark in the last 24 hours indicates the market has entered conditions that suggest a pre-halving rally. Jag Kooner, the Head of Derivatives at Bitfinex, explained that the current market movement is consistent with the pre-halving rally trend observed in previous Bitcoin cycles.
Prominent Figure Makes Noteworthy Bitcoin Prediction
Kooner added that historically, these rallies have started about eight weeks before the halving event. The Bitfinex analyst stated:
“This rally has the potential to push prices beyond the previous cycle’s highest levels, as last week’s significant spot Bitcoin ETF inflows indicated Bitcoin’s re-emergence as a trillion-dollar asset.”
Kooner also mentioned that the reduced selling pressure related to Grayscale’s converted GBTC fund and daily inflows of $300 to $400 million into other ETF funds have significantly contributed to supporting the Bitcoin price. However, the analyst cautioned that there could still be uncertainties:
“While historical patterns can provide insight, it is very important to understand that their repetition is not always guaranteed. There was a gradual flow of capital towards the altcoin market, which is common when Bitcoin records significant peaks during a bull market. However, in this cycle, due to the large number of crypto projects, capital has flowed towards specific sectors such as the Solana ecosystem and AI-based projects, rather than spreading gradually across all altcoin markets.”
The Halving Event and Bitcoin
The next Bitcoin halving event is likely to occur in April of this year, which will reduce the reward miners receive for verifying and adding new blocks to the blockchain networks by 50%. Halving happens approximately every four years or after every 210,000 blocks are mined. The last halving occurred in 2020 when the block reward was reduced from 12.5 Bitcoins to 6.25 Bitcoins.
The upcoming halving will take place after approximately 840,000 blocks are mined, leading to a reduction in the block reward from the current 6.25 Bitcoins to 3.125 Bitcoins per block. This mechanism is programmed into the Bitcoin protocol and aims to make new Bitcoin supply more scarce over time.
