Bitcoin’s halving in 2024 is becoming a “beefy” situation for BTC prices despite the ETF inflow tapering off pre-halving. Even with this, Bitcoin might charge back into rally mode towards new all-time highs.
The fourth-ever Bitcoin halving event, which occurred on April 20th, could kickstart the “most bullish” Bitcoin cycle patterns coupled with the presence of Bitcoin exchange-traded funds (ETFs).
For the first time in cryptocurrency history, Bitcoin soared to a new all-time high above $73,600 on March 13th, just before the halving event. Historically, Bitcoin’s price has surged to new highs within 518-546 days following prior halving events.
According to Sukhveer Sanghera founder and CEO of Earth Wallet, this record pre-halving peak combined with institutional inflows from ten-spot Bitcoin ETFs in the US has created the “bulliest setup” for Bitcoin. He told:
“The combination of nearly all BTC being mined, early investor interest via ETFs, growing demand for inflation hedging, and increased utility — all the fundamental aspects of Bitcoin’s value proposition are stronger than ever before.”
Bitcoin took a 5.6% tumble on the weekly chart and was traded above $63,600 as of 9:58 AM UTC. According to TradingView, the world’s first cryptocurrency has only grown by 2.85% in the last month, but since the start of 2024, it’s up more than 50%.
While the long-term outlook for Bitcoin’s price movement is bullish, historically, its halvings have been preceded by short-term corrections.
According to Temujin Louie, CEO of Wanchain, Bitcoin’s price could see an end to its current downturn if it manages to break above resistance at $65,000. He told Cointelegraph:
“Historically, a Bitcoin halving has been followed by a downturn. Expect continued consolidation as long as support around $58,000 holds. If BTC surpasses recent highs, expect a quick rise to $80,000, $90,000, or even $100,000, as investors prefer round figures.”
On Bitcoin whales, unrealized ETF profits have only grown by 1.6% — has BTC hit rock bottom?
Bitcoin ETF inflows are experiencing a temporary slump ahead of the halving
Last month’s sluggish price movement is mainly attributed to a slowdown in Bitcoin accumulation across ten spot Bitcoin ETFs in the US, as net inflows turned negative in the halving week.
As per Dune, US spot Bitcoin ETFs saw a negative net outflow of $398 million compared to a net positive inflow of over $199 million the previous week.
Despite the temporary slump, the ten Bitcoin ETFs collectively amassed over 835,000 BTC worth $53.5 billion, constituting 4.24% of Bitcoin’s current supply.
Jonas Simanavicius, co-founder and CTO of Syntropy, remains upbeat about Bitcoin’s price movement despite the temporary ETF inflow dip, signaling that new investors are gearing up to enter the BTC market:
“Initial investors from major financial institutions have entered the market, and the next wave of institutions needs time to prepare their inflow. While large banks anticipate some BTC price decline post-halving, I see strength in BTC due to potential new money inflows and its positioning as an inflation hedge.”
Simanavicius added that Bitcoin is increasingly seen as a “protection against political tension” amid escalating global conflicts, which could bolster its safe-haven asset status.
