Analyst Predicts Pre-Halving Rally
Bitcoin’s recent surge past $52,000 has ignited speculation about a potential pre-halving rally, a trend historically linked to the imminent reduction in mining rewards. Jag Kooner, Head of Derivatives at Bitfinex, suggests that the current market dynamics are in line with such a rally, typically commencing eight weeks before the halving event.
Quote: “This rally has the potential to push prices beyond previous cycle highs,” Kooner expressed, emphasizing the resurgence of Bitcoin’s trillion-dollar market cap and consistent inflows into spot Bitcoin ETFs as influential factors.
Unique Market Factors and Cautions
Kooner highlights the decreasing selling pressure resulting from Grayscale’s GBTC conversion as a key contributor to the price support. However, he warns against relying solely on historical patterns for predictions.
Quote: “While they offer insights, they don’t guarantee repetition,” Kooner emphasizes, pointing to the growing interest in altcoins as a distinctive feature of this pre-halving phase.
Regarding the entire cryptocurrency market’s value surpassing $2 trillion and the upcoming Bitcoin halving expected in April, where the miner reward per block will decrease by 50%, Kooner notes the event’s aim to regulate the supply of new Bitcoins, potentially influencing its value due to heightened scarcity.
