A new report from Canaccord is making waves in the cryptocurrency world, suggesting that Bitcoin (BTC/USD) could be on the cusp of a significant rally by the end of 2024 or early 2025. The report’s analysis hinges on historical trends surrounding Bitcoin’s halving cycles and the current favorable market conditions.
The Bitcoin halving, which occurred earlier this year, is a key event that reduces the rate at which new Bitcoins are created. Historically, Bitcoin has seen significant price rallies within 6-12 months following these halving events. As we are now 163 days past the latest halving, analysts are cautiously optimistic about the possibility of an uptrend.
Canaccord’s report underscores the “halving cycle psychology” that could drive a more bullish market outlook. The analysts believe that a combination of favorable supply-demand dynamics post-halving, coupled with current market conditions, could lead to an upward price movement in the coming months.
Bitcoin’s price has remained remarkably stable, recently pushing past previous resistance levels around $60,000. This resilience is further bolstered by the growing strength of Bitcoin’s network security, evidenced by new all-time highs in hash rate.
Meanwhile, the report also sheds light on Ethereum (ETH/USD), highlighting the launch of spot ETH ETFs as a significant long-term catalyst for growth. These ETFs are expected to facilitate wider adoption of Ethereum and reduce regulatory uncertainty, making it more accessible to institutional investors.
While Ethereum has recently underperformed Bitcoin in the short term, the report attributes this to lingering concerns about use case development and competition from alternative Layer-1 networks. However, the analysts believe that the introduction of these ETFs will differentiate Ethereum from its competitors and enhance investor interest and developer activity in the long run.
As the market eagerly awaits a potential rally, discussions about cryptocurrency trends and forecasts will be central at Benzinga’s Future of Digital Assets event on November 19. This event will bring together key market players to shed further light on the evolving landscape of the cryptocurrency market.
