Welcome to the latest edition of the Hodl fm weekly digest, where we dive deep into the heartbeat of all things crypto. From jaw-dropping Bitcoin price predictions post-halving, to intriguing political associations in the Bahamas, there’s no shortage of thrilling updates this week either. Dive in with us and let’s decode the week that was!
‘BTC to $130K’ Says Price Models Post-2024 Halving
You read that right. Recent analytical models suggest that Bitcoin could skyrocket to around $130,000 by the end of 2025. This means doubling its current all-time high within two years following the anticipated halving in April 2024.
Bitcoin, currently priced at around $28,500, seems to be on a trajectory toward this valuation, as indicated by trader and analyst CryptoCon. His recent analysis shared on X, aka, Twitter, points to a convergence of BTC price predictions around the $130,000 mark for 2025.
Market players are currently in discussions about BTC’s potential price movement after the upcoming block halving. For CryptoCon, Bitcoin’s future looks optimistic. His studies, focusing on Bitcoin price cycles and their respective peaks and troughs, emphasize the $130,000 region as a likely target.
So, what does BTC halving mean? This phenomenon is a pre-programmed event that happens roughly every four years, or more specifically, every 210,000 blocks. During the halving, the reward miners receive for adding new transactions to the blockchain is cut in half. Why? The Bitcoin network was designed with a hard cap of 21 million BTC. Halving events ensures that the addition of new BTC slows down over time, making BTC more scarce as the cap approaches.
This roughly translates to, halvings leading to increased demand against a backdrop of decreased supply, often resulting in upward price momentum. When miners receive fewer BTC for their efforts, the reduced supply and the sustained or increased demand can drive prices higher. That’s the spirit!
Back to the projections, CryptoCon’s analysis spotlighted the “early” tops in each BTC price cycle, juxtaposed with the actual cycle peaks, which set new all-time highs. Historically, the early tops appear around July 9, while the new highs often manifest around November 28. By utilizing diagonal trendlines from the first early top, CryptoCon suggests a price close to $138k for the next cycle.
However, caution is still advised. Another analyst, Rekt Capital, highlighted the potential for new local lows before Bitcoin witnesses another bull run. Referencing past halvings, he stated that Bitcoin retraced by 25% in 2015/2016 and 38% in 2019, roughly 180 days before each halving. Thus, while Rekt Capital maintains an overall bullish stance, he doesn’t dismiss potential bearish interludes. Take every bit of information with a pinch of salt and do your own research before making any moves in the crypto market, dear Hodler.
Hamas’ Crypto Usage Damages Coinbase’s Lobby
Now, over to unpleasant news. The conflict between Palestine and Israel is growing, and as any major world event would do, the conflict is causing movement in the crypto world as well. Berenberg Capital Markets has highlighted that Coinbase’s U.S. lobbying efforts could be impacted due to reports of Hamas using cryptocurrency for funding attacks on Israel. Mark Palmer, Berenberg’s lead analyst, expressed concerns over Coinbase’s latest financial report, emphasizing the regulatory scrutiny Coinbase already faces is now even more complicated due to the Israel-Hamas situation.
Last week, Israeli authorities closed over 100 crypto accounts linked to Hamas funding, meaning millions in cryptocurrency. Despite Hamas previously stating their move away from cryptocurrency, Palmer believes such events cast doubt over crypto’s legal clarity.
Coinbase has been working on its lobbying in the U.S. with hopes of more crypto-friendly regulations. While acknowledging Coinbase’s ongoing issues with the U.S. Securities and Exchange Commission, Palmer revised his prediction of the company’s consumer transaction revenue upwards from $210 million to $240.8 million. He ended by cautioning against shorting Coinbase’s shares given the volatile environment. What is your thought on this situation? Can crypto’s untraceable nature be also its weak point?
Read also: Coinbase Review – Pros, Cons, Features
Uncovered: Bahamian Prime Minister Asked for NFT Advice from FTX’s Bankman-Fried
Evidence emerged in a New York court on Tuesday that two months before the downfall of Sam Bankman-Fried’s FTX, Bahamian Prime Minister Philip Davis had approached the founder of the infamous exchange for counsel on an NFT project associated with his son. It turned out an email was the main evidence. Dated September 2022, the email revealed close ties Bankman-Fried maintained with Bahamian officials.
This intimate and weird connection comes under the lens, as the FTX exchange operated without proper licensing for over two years in the Bahamas. Something fishy was going on from the start apparently. With growing concerns over its regulatory oversight, the Securities Commission of the Bahamas earlier this year proposed stricter regulations for crypto businesses to ensure their operations meet adequate safety standards.
U.S. Attorney Danielle Kudla showcased the email to corroborate the phone number FBI agent Richard Busik had examined as part of the wire fraud case against Bankman-Fried.
More news about Sam Bankman-Fried and FTX:
Sam Bankman-Fried: The Rise and Fall of FTX Founder
SEC Takes On Prager Metis Over FTX Audit Scandal
The Crypto Bunker: FTX’s Bold Plan for Surviving the Apocalypse
BlackRock Confirms Global Client Demand for Crypto
Larry Fink, CEO of the world-renowned asset management company BlackRock, confirmed on Fox Business that there’s a significant global appetite for cryptocurrency. Fink’s comments came in the wake of a sudden price surge following inaccurate rumors regarding the SEC’s approval of BlackRock’s spot bitcoin ETF.
While he avoided discussing the specifics of the application process, Fink was not hesitant to shed light on the prevailing sentiments around cryptocurrency. “The fervor we’ve witnessed today is indicative of the widespread interest in crypto,” he remarked. This sentiment isn’t isolated; it mirrors the feedback BlackRock has been receiving from its international clientele, emphasizing a growing “need for crypto.”
Fink provided insight into the recent rally, suggesting it may be a reflection of broader global concerns. “Considering the ongoing tensions in Israel and the prevailing threat of global terrorism,” he said, “the current rally could very well be a move towards reliable investments during uncertain times.”
Read also: BlackRock’s ETF Carnival: A Bullish Breakdance as Bitcoin Shorties Take a $16M Two-Step Tumble
Isn’t it encouraging to see traditional financial giants like BlackRock turn their heads to the digital asset space? Could this mean Fink’s acknowledgment of the global demand signals tables may turn soon in the finance world?
And there you have it – another week of developments in the crypto world. Whether you’re captivated by the prospects of a Bitcoin rally, or the broader implications of global giants like BlackRock acknowledging the crypto movement, one thing is clear – the world of cryptocurrency is as dynamic as ever. Until next week, keep hodling, keep exploring, and stay informed!
