Bitcoin Could Hit $172K Due to Halving and MicroStrategy, Says Analyst

The crypto market turned bullish following the US Fed’s interest rate cut, with Bitcoin briefly touching a high of $64,733. Amid the current recovery, analysts have predicted a significant rally in the last quarter of 2024. 

Some experts say BTC could rise by as much as 171%, pushing its price to an astonishing $172,800 before the end of the year. The predictions hinge on the Federal Reserve’s latest rate cuts and Bitcoin’s historical trend during halving years. 

Could Bitcoin Reach $172,000 by Year-End?

Many crypto analysts believe BTC could repeat its previous halving cycles, where it saw significant growth. 

After halving, Bitcoin surged by over 60% in the final quarter of 2016 and 2020. According to analysts, this pattern might repeat, with the potential for BTC to hit between $100,000 and $172,000. 

Renowned crypto analyst Ali Martinez highlighted these numbers. He wrote: “If Bitcoin continues this trend, we could see another massive surge by the end of 2024.”

Another key driver of this potential rally is the Fed’s recent decision to cut interest rates. Rate cuts typically lead to higher consumer spending, borrowing, and investment, pumping fresh funds into financial markets. This liquidity boost could drive BTC’s price like it did in previous years.

Bitcoin has been trading in a re-accumulation range between $50,000 and $70,000, but the recent stimulus could push it higher.

Institutional Investors Fueling Bitcoin’s Growth

Institutional investors have shown strong confidence in Bitcoin’s future. MicroStrategy, known for its massive Bitcoin holdings, recently bought another $450 million worth of BTC. This move is a bullish signal and reflects growing trust in Bitcoin’s potential. 

Data from 10X Research also points to positive signs. The firm noted that stablecoin minting and futures leverage have been increasing, improving Bitcoin’s market structure. According to the report, these factors could contribute to a breakout in Q4. 

However, looking at the daily chart, BTC needs to cross the $65,300 level for a more significant rally. Bitcoin is trading at $63,565, up 1.34%, with a total market cap of $1.256 trillion. Its 24-hour trading volume has surged more than $28.88 billion.

Bitcoin vs. Gold: A 400% Gain in the Cards?

Some analysts believe Bitcoin could outperform gold by 400% in the coming months. 

Veteran market analyst Peter Brandt shared a technical setup that suggests Bitcoin could see massive growth against the precious metal. Brandt pointed to a classic inverse head-and-shoulders (IH&S) pattern that indicates a solid upward trend for Bitcoin.

This IH&S pattern typically forms when the price dips three times, with the middle dip being the lowest. Brandt said this setup could push the Bitcoin-to-gold ratio much higher, with a target of 123 ounces of gold per BTC by 2025. 

One Bitcoin is worth 24 ounces of gold, but if this pattern holds, Bitcoin could surge by over 400%. As institutional investors continue to pump money into Bitcoin, many believe it could surpass gold in the coming years.

Altseason on the Horizon as BTC Rises

As Bitcoin continues to rise, many in the market are preparing for an altseason. Ethereum, the flagship altcoin, has already seen gains of 15.90% in the past week, with a nearly 24-hour 3% increase. 

However, there is some uncertainty about where ETH is headed as the recent increase in Ethereum whale deposits signals potential volatility. 

According to recent data, a whale tagged “ox682” deposited ETH worth $38.4 million into the Kraken exchange. This whale still holds 26,639, about $69.7 million.

Meanwhile, the ongoing momentum in Bitcoin ETFs also contributes to the bullish outlook. Last week, BTC ETFs saw inflows of $397 million, with Fidelity’s FBTC leading the way, according to SoSoValue.

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