Bitcoin’s price has already gone through a massive rally in the past six months or so, perhaps fueled first by the hype of the spot ETFs in the US and then the actual demand for those products once they went live.
As such, the asset broke its 2021 all-time high but faced a massive correction after that. With less than a month until the next halving, an event that typically serves as a catalyst for future price movements, we decided to ask Perplexity – a popular AI chatbot that has access to the Internet in real-time, unlike ChatGPT – whether BTC will tap another ATH in the following weeks.
New ATH Before the Halving?
Ever since BlackRock filed to launch a spot Bitcoin ETF in the US last June, the sentiment in the community changed, and the market experienced a long-overdue resurgence. Bitcoin struggled at well below $30,000 but gained more than 50% in the next months and doubled its price when the actual ETFs were approved in mid-January this year.
The bull run continued after a brief hiatus, and the primary cryptocurrency broke its 2021 all-time high of $69,050 in early March. The rally culminated on March 14, when the asset tapped $73,800 to register its current ATH. Since then, though, the bears have been predominantly in control and have pushed BTC south by about ten grand.
The halving is an event that slashes the BTC rewards in half, thus making Bitcoin more scarce. In theory, this should be a highly bullish development for the cryptocurrency, especially if the demand remains the same or increases. History shows that BTC has gone on a tear in the first 6-12 months after each of the previous three halvings.
Consequently, the community expects another rally after the fourth halving, which should take place in 29 days, according to current estimations. But will BTC break its current peak? Perplexity seems to think so.
“Based on the information from the search results, it is highly likely that Bitcoin will break its all-time high price again before the 2024 halving. Several factors contribute to this likelihood, including the positive momentum in the market, the recent approval of spot Bitcoin ETFs, and the anticipation surrounding the upcoming halving event in April.”
How High Can Bitcoin Go?
Despite the recent turnaround in terms of ETF inflows and outflows, these financial assets became a hit among traditional investors and broke numerous records in the first two months after their launch. The demand for BTC led to an impressive bull run for the asset and the entire market, and Perplexity believes there are more gains to be charted in 2024 and 2025.
The AI chatbot said Bitcoin could go to $90,000 this year, based on research from analysts like Bernstein. It could peak within a six-digit price territory of over $122,000, Perplexity concluded.
Read the full article here
