Despite the ongoing correction, many predictions about the price of Bitcoin remain positive.
For now, it does not seem that the correction has compromised the medium-term trend, which leads up to the halving in mid-April.
The correction in progress and the price predictions for Bitcoin in 2025
Yesterday, the price of Bitcoin had reached its new all-time high at over $73,800.
As has happened several times in the recent past, after reaching a new all-time high, the price has dropped.
For example, on March 5th after reaching $69,300, breaking the previous record of November 2021, the price of Bitcoin dropped below $60,000 in just a few hours. However, it later rose back above $63,000, and the next day it had already returned above $67,000.
The correction currently underway is similar, but in some ways different.
Indeed, the descent took place in three moments, several hours apart from each other.
First it dropped to $68,500, then to $66,700 and finally today it also dropped to $65,500.
So the decline was slower and less pronounced, at first. However, there has not yet been a sharp rebound, which suggests that it could continue.
The minimum levels reached today are more or less the same as those of March 7, so it would also seem possible for a potential drop just below $60,000, as it did the day before.
However, up to $62,000 it would only be a return to the levels of two weeks ago, so nothing particularly dangerous.
The current market situation
But the most interesting thing that happened yesterday is another one.
Indeed, it does not seem that the descent was triggered by an increase in sales, but by a strong decline in purchases.
In recent days there was a real FOMO, which kept buying pressure at very high levels. Yesterday the FOMO seems to have dissipated, bringing everything back to normal.
Returning to normality also necessarily means a return to a more normal buying pressure, well below the significantly high levels of recent days.
There is a particular piece of data that suggests that the medium-term trend may not have been compromised.
The number of BTC in deposit on exchanges continues to decrease. This decline started exactly one week ago, is ongoing, and still in progress.
So there are more people withdrawing Bitcoin from exchanges than those depositing them to sell.
This scenario seems to have the appearance of an accumulation period, probably in anticipation of what could happen in the coming weeks, before the halving, or in the coming months, after the halving.
Optimistic forecasts, despite the correction of the Bitcoin price
A scenario like this justifies the existence and spread of still optimistic forecasts, despite the falling price.
It should not be forgotten that just over two weeks ago the price of Bitcoin was still below $55,000, so unless it drops below this figure it is only the end of FOMO. FOMO is pure emotion, so it can come back as quickly as it dissolved yesterday.
Yesterday, analysts at Alliance Bernstein, for example, reiterated their belief that the current trend will bring the price of BTC to around $150,000 within the next year.
Analysts Gautam Chhugani and Mahika Sapra emphasize that in 2024 there are two factors pushing the price of Bitcoin higher, namely the halving and the new ETFs on US exchanges.
They also claim that we are still only at the beginning of the integration of BTC into traditional asset portfolios.
It is worth noting that Chhugani and Sapra had already predicted in November 2023 that the price of Bitcoin could rise to $150,000 in 2025, so they have simply reiterated that the current situation confirms this hypothetical trend.
Their hypothesis was that by the end of 2024, there would be $10 billion in net inflows into Bitcoin ETFs, while $11 billion has already arrived in just over two months. They also estimated inflows for 2025 at $60 billion.
The current situation is therefore even better than their November forecasts, but despite this they confirm the target of $150,000. If the price of BTC were to reach such a peak, it would have recorded a +100% increase from yesterday’s historical peak.
What will BTC miners do?
Since in the last few days the stock prices of companies that deal with Bitcoin mining have been sharply declining, Bernstein analysts argue that they could soon recover after the halving.
They specifically hypothesize that institutional interest in Bitcoin-related actions is expected to grow, and that mining companies will be the main beneficiaries of this trend.
Although the halving will halve the reward earned by BTC miners from one moment to the next, it is a widely anticipated event, so in theory they should already have prepared themselves to come out unscathed.
Furthermore, there are also other analysts who argue that the impact of the new ETFs will continue to positively influence the price of Bitcoin for months to come, and consequently also that of the publicly traded mining stocks.