The price of Bitcoin has already seen a massive rise over the past six months, perhaps fueled first by the hype of spot ETFs in the United States and then by real demand for these products once they were put online.
As such, the asset broke its 2021 all-time high, but then faced a massive correction. 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 real-time internet access, unlike ChatGPT – if BTC will do it. hit another ATH in the following weeks.
New ATH before the halving?
Since BlackRock filed to launch a Bitcoin ETF in the United States last June, community sentiment has shifted and the market has seen a long-awaited resurgence. Bitcoin struggled well below $30,000, but gained more than 50% over the next few months and doubled in price when the ETFs were approved in mid-January this year.
The bull run continued after a brief hiatus and the leading cryptocurrency broke its 2021 all-time high of $69,050 in early March. The rally peaked on March 14, when the asset reached $73,800 to record its current ATH. Since then, however, the bears have taken control and pushed BTC south by around ten thousand dollars.
Halving is an event that halves BTC rewards, making Bitcoin more scarce. In theory, this should be a very bullish development for the cryptocurrency, especially if demand remains the same or increases. History shows that BTC crashed in the first 6-12 months after each of the three previous halvings.
Therefore, the community expects a further rebound after the fourth halving, which is expected to take place in 29 days, according to current estimates. But will BTC break its current peak? Perplexity seems to think so.
“Based on the information in the research results, it is highly likely that Bitcoin will break its all-time high price again before the 2024 halving. Several factors contribute to this probability, including positive market dynamics, recent approval spot Bitcoin ETFs and anticipation around the upcoming April halving event.
How High Can Bitcoin Go?
Despite the recent turnaround in ETF inflows and outflows, these financial assets have become a hit with traditional investors and have broken numerous records within the first two months of their launch. Demand for BTC has led to an impressive rally for the asset and the overall market, and Perplexity believes there will be more gains to be made in 2024 and 2025.
The AI chatbot said Bitcoin could hit $90,000 this year, based on research from analysts like Bernstein. It could peak in a six-figure price range of over $122,000, Perplexity concluded.
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