Bitcoin has been demonstrating a dizzying rally lately, prompting various analysts to make bold predictions about the BTC rate.
Bitcoin has staged an unprecedented rally in recent months, attracting an increasing number of financial companies and investors. This inspires experts to make the most daring predictions regarding the further growth of BTC.
As recently as March 3, Bitcoin again tried to break through the psychological level of $ 50,000, having marked a maximum in the region of $ 52,600, but could not gain a foothold above this round mark and on March 4 again traded below it.
However, overall, BTC dynamics continues to remain bullish. The price registered a new all-time high at $ 58,333 on February 21st. Analysts put forward various reasons that may be behind such a rally, and the last halving is named as one of them.
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Bullish predictions for BTC
William Quigley, Managing Director of Magnetic, stated in an interview with CNN Business that last year’s Bitcoin halving was the key driver behind the current BTC rally.
In his opinion, history shows that in the next 12-18 months, bitcoin can rise in price by 300% – 500%.
Recall that the last halving took place in May 2020. At the same time, a number of participants in the crypto community were skeptical about this event, believing that it would not have the same impact on prices as previous halvings.
So, the second halving took place in July 2016. On this day, the BTC rate was $ 660. In December 2017, 17 months later, Bitcoin hit its all-time high by $ 20,000.
If this trend repeats again, confirming Quigley’s predictions, this will mean that the main cryptocurrency of the world may be able to cope with the $ 100,000 mark. The price inflation is already taking place, and yet a year has not passed since the halving.
Other influencing factors
However, in addition to the halving effect, other important factors can be identified on the crypto market that affect the BTC rate.
First of all, this is the notorious interest in investing in bitcoin on the part of large and institutional investors. In this trend, both actual cash injections into the crypto market (like, for example, the purchase of bitcoin worth $ 1.5 billion by Tesla) and the general hype fueled by the media around this topic.
Traditional financial institutions also managed to say their weighty word. For example, the heavyweight of the banking sector Goldman Sachs recently announced the launch of trading in cryptocurrency assets, including Bitcoin futures.
Previously, institutions traditionally showed distrust of digital assets, citing their volatility and considering them an unreliable investment instrument. This significantly slowed down the massive adoption and popularization of cryptocurrencies. However, there is now a tectonic shift in this issue, and such a change may support further price increases.
Read also: Bitcoin forecast for 2021 – expert opinions
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