Bitcoin will expand its rally to hit a new all-time high by Christmas, according to Vijay Boyapati.
“In the 2016 cycle, Bitcoin broke its previous all-time high only 229 days after halving,” said the crypto analyst on Thursday. “If we were to follow exactly this course, [the cryptocurrency] would hit a new all-time high shortly after Christmas Day this year.”
A goal of $ 325,000
The term “halving” refers to the number of coins miners get for maintaining the Bitcoin blockchain. This reward is halved after every four years – or after every 210,000 blocks mined.By halving, only half as many Bitcoins will be produced as before, which leads to an improved scarcity. Bitcoin had gone through three such events. The first two took place in 2012 and 2016. Each of these events resulted in massive price hikes, leading observers to label the halving as bullish.
Bitcoin correction in progress
Only a few days before Boyapati’s statements on Bitcoin, the cryptocurrency surged above the $ 12,000 mark.The new annual high to date followed a strong upward rally that began in March 2020. A downtrend toward $ 3,858 amid a global market routine created reasonable opportunities for bulls to buy the break. Later, the US Federal Reserve’s unlimited economic stimulus program to support the US economy helped drive Bitcoin further up against a weakening US dollar.