Before the halving on April 20, Bitcoin (BTC) saw a correction of more than 5%. There was also an outflow of capital from the Bitcoin spot ETFs. Still, current conditions could easily lead to one of the most bullish scenarios ever.
Current conditions possibly ideal basis
According to Sukhveer Sanghera, founder and CEO of crypto wallet provider Earth Wallet, a number of circumstances can be the ideal basis for a significant price increase. For example, he mentions the all-time high before the Bitcoin halving, but also the significant inflows from large financial institutions into the eleven American Bitcoin spot ETFs.
“The combination of almost all Bitcoin mined, new investors via ETFs, increasing demand for anti-inflation options and the growing capabilities of Bitcoin itself shows that the fundamentals are stronger than ever,” Sanghera said.
The Impact of BTC Halvings
Despite Bitcoin’s expected long-term growth, historical data shows that halvings are often followed by a short period of correction. For example, Wanchain CEO Temujin Louie told Cointelegraph that the end of this correction could be over if Bitcoin manages to break the $65,000 resistance.
The CEO believes that Bitcoin will continue to consolidate as long as the price remains above $58,000. If the coin breaks previous highs, he believes it could quickly rise to $80,000, $90,000, or even $100,000.
Decline in inflows into Bitcoin ETFs
According to the website Dune, there were larger outflows than inflows from investing in Bitcoin ETFs in the week leading up to the Bitcoin halving. Dwindling inflows over the past month have also caused Bitcoin’s price action to decline. Despite this decline, Bitcoin ETFs collectively still hold about 4.24% of the total Bitcoin supply. These 835,000 BTC are collectively worth about $53.5 billion.
Even after declining inflows into Bitcoin ETFs, expectations for Bitcoin price development remain positive. According to Jonas Simanavicius, co-founder and CTO of Syntropy, it appears that a new group of investors is preparing to make larger investments in Bitcoin.
