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Leading crypto analysis firm IntoTheBlock suggests that Bitcoin (BTC) could be ready to reach all-time highs within the next six months. The head of IntoTheBlock’s research arm, Lucas Outumuro, states that there is an 85% chance for Bitcoin to hit new record levels, listing five fundamental catalysts expected to drive up the price of the largest cryptocurrency in the coming months.
Catalysts That Could Drive a Major Surge in Bitcoin
The first catalyst highlighted by Outumuro is the highly anticipated Bitcoin block reward halving scheduled for April. This event, which occurs approximately every four years, cuts the block reward received by miners in BTC by half. Outumuro expresses confidence that miners are well-prepared for this reduction in block rewards, predicting that Bitcoin’s price could reach new peaks just one month after the halving.
Outumuro also emphasizes that the halving will reduce the network’s inflation rate from 1.7% to 0.85% after April, likely decreasing the selling pressure on Bitcoin. He suggests that this reduction in block rewards could further support Bitcoin’s price momentum.
Another catalyst for the potential increase in Bitcoin’s price is the fresh capital influx from the recently approved spot Bitcoin exchange-traded funds (ETFs). Outumuro notes that spot Bitcoin ETFs have attracted approximately $4 billion in new investments within just one month of their launch, which could fuel demand for Bitcoin in an environment where new supply is reduced following the halving.
Expectations of the Federal Reserve (Fed) cutting interest rates also stand out as a catalyst for Bitcoin’s rise. Outumuro points out that investors have already priced in the Fed’s easing of monetary policy, which could lead to lower borrowing costs and increased liquidity in financial markets. Historically, such conditions have been a trigger for growth in both Bitcoin and other risk-driven markets.
Outumuro also draws attention to the implicit stimulus the Fed may provide to support the economy ahead of the US presidential elections in November 2024. As the election approaches, the Fed may take steps to stimulate economic growth, which could indirectly support Bitcoin’s price trajectory.
Bitcoin Could Gain Strength with Corporate Support
Finally, Outumuro predicts that companies worldwide will continue to accumulate Bitcoin in the coming months. With the recent approval of spot ETFs making Bitcoin more accessible to Wall Street, he expects more hedge funds to enter the market.
According to the head of IntoTheBlock’s research arm, companies in Asia and South America may follow the US in adopting Bitcoin for their treasuries, especially after the legitimization of spot Bitcoin by ETFs.
