After last week’s major crash, Bitcoin (BTC) is trying to regain the support level around $56,000, but fears of further decline have reduced the total market value by about 3.3% in the last 24 hours. With this drop, the total market value settled at approximately $2.14 trillion as of this morning. The lack of significant crypto events in the short term has increased pessimism across the market.
Expert Predictions on Bitcoin’s Future
Many analysts believe the cryptocurrency market will reflect the ongoing bull run of major stock indices as the year progresses. Additionally, miners who recently paused to upgrade their mining equipment are expected to resume operations. The impact of the fourth block reward halving event is anticipated to become more pronounced as institutional investors increasingly adopt Bitcoin and altcoins.
Experienced Bitcoin analyst and economist Timothy Peterson predicts the bullish trend will return in the fourth quarter of 2024. According to Peterson, if Bitcoin closes July above $50,000, it is highly likely to stay above this level until October.
The analyst emphasized that there is a 60% chance Bitcoin will trade higher than its current level three months after a 25% drop from its all-time high. Moreover, he noted that there is a 25% chance Bitcoin will reach a new all-time high during the same period.
Understanding Market Impact
Bitcoin price has been stuck in the biggest correction phase since the beginning of last year, following significant gains. The widespread adoption of Web3 protocols and cryptocurrencies driven by institutional investors has significantly increased market liquidity and upward momentum. However, with the onset of the summer season, liquidity has started to dry up, and experts cite this as one of the main factors fueling the decline, predicting this trend will continue until the end of summer.
Despite all this, the likelihood of a continued rise later this year is considered quite high amid the US presidential election and expected interest rate cuts. As the market watches these developments, the future of the Bitcoin and altcoin market continues to attract interest among investors and analysts.
