Bitcoin‘s (BTC) price trajectory over the last six months has been characterized by a significant rally. Initially, it was driven by the anticipation of approval for spot exchange-traded funds (ETFs) in the US, followed by actual demand post-launch. After reaching an all-time high of around $69,000 in 2021, the king of cryptocurrencies faced a major correction. With less than a month to the next block reward halving, historically seen as a catalyst for bullish future price movements, there is speculation on whether Bitcoin will reach a new all-time high (ATH) in the coming weeks.
Block Reward Halving Fuels Bullish Expectations
The sentiment surrounding Bitcoin significantly changed after BlackRock, the world’s largest asset management company, applied to the US Securities and Exchange Commission (SEC) for a spot Bitcoin ETF in June last year. Following this development, the cryptocurrency market experienced a revival, and Bitcoin’s price surged over 50% in the months following the application.
The SEC’s approval of other spot ETFs, including BlackRock’s on January 10, led to a doubling in Bitcoin’s value, with the price of the cryptocurrency king reaching a record high of $73,750 on March 14. Since setting this record, the price of the largest cryptocurrency has been predominantly under bearish control, leading to downward pressure.
As is well known, the block reward halving expected to occur in less than a month will reduce the block reward given to miners per block in BTC by 50%. This will make Bitcoin an even scarcer asset. Historically, block reward halvings have been triggers for strong rallies in Bitcoin. Consequently, there is an expectation within the community for a strong rally following the fourth block reward halving.
Artificial Intelligence Bullish on Bitcoin
According to predictions by Perplexity, a popular artificial intelligence chatbot with real-time internet access, there is a high probability that Bitcoin’s price will refresh its record once again before the 4th block reward halving. The AI identified contributing factors to this likelihood, including positive market momentum, the recent approval of spot Bitcoin ETFs, and expectations surrounding the 4th block reward halving.
Despite an increase in outflows over inflows in spot ETFs in the last week, traditional investors are showing great interest in these financial assets, leading to record demand for Bitcoin. Based on research by analysts like Bernstein, Perplexity evaluates that Bitcoin’s price could reach $90,000 this year. Moreover, it anticipates that Bitcoin could potentially peak in the six-figure price range, surpassing $122,000.
