Bitcoin to Enter Pre-Halving Danger Zone, Industry Leaders Explain
Bitcoin is experiencing some shifts in its market dynamics, prompting insights and predictions from industry experts.
Amidst significant price increases, Crypto.com’s CEO, Kris Marzsalek, attributes Bitcoin’s surge—exceeding a remarkable 150% from the previous year—to substantial inflows into new spot exchange-traded funds (ETFs). Marzsalek, speaking on CNBC’s Squawk Box, highlights the success of Bitcoin ETFs, citing them as a driving force behind the cryptocurrency’s bullish momentum.
Marzsalek characterizes the current price correction in Bitcoin, which saw a decline from all-time highs above $73,000 to approximately $65,000, as a “healthy move.” He explains that such corrections alleviate excessive leverage within the system, fostering stability.
Moreover, Marzsalek emphasizes the importance of steady inflows into the industry to sustain Bitcoin’s growth over the next 12 to 18 months.
Despite recent fluctuations, the price of Bitcoin remains resilient, hovering above $66,000. Marzsalek’s insights echo sentiments shared by other crypto leaders, such as Binance CEO Richard Teng, who anticipates Bitcoin’s continued ascent, projecting a climb beyond $80,000 by year-end. Teng attributes this optimism to institutional investors’ growing allocations to Bitcoin, facilitated by the emergence of new U.S. ETFs.
In parallel, Rekt Capital, a renowned crypto analyst, warns of an impending “Danger Zone” for Bitcoin, historically occurring in the 14 to 28 days leading up to its halving events.
With the next halving forecasted in just under 33 days, Bitcoin faces potential price retracements. Notably, Bitcoin’s price has already receded by 8.5% from its recent peak, signaling potential volatility ahead.
Marzsalek’s counterpart at Crypto.com, co-founder Kris Marszalek, shares a similar outlook, describing Bitcoin’s recent price drop as a necessary adjustment to alleviate leverage, according to Cointelegraph.
Marszalek underscores the current market dynamics, likening Bitcoin’s trajectory to that of late 2020 and early 2021, characterized by a notable rally from under $20,000 to over $60,000 within three months.
Both Marzsalek and Teng anticipate a gradual increase in Bitcoin’s price, emphasizing its long-term potential as a store of value. Marszalek also emphasizes the importance of stability, advocating for less volatile price movements to align with Bitcoin’s role as a multi-decade asset.
In a recent conversation with Asharq News, Walid Abu Zaki, CEO of UNLOCK Blockchain, highlighted two key drivers behind Bitcoin’s movement: the upcoming halving event in April and the impact of Bitcoin ETFs. He emphasized the unprecedented demand for Bitcoin, leading to quadrupled daily trading volumes within a month, surpassing $202 billion.
Despite expected fluctuations due to technical glitches and market interventions, Abu Zaki remains bullish, attributing the market’s upward trend to significant demand and diminishing supply.
With over 150,000 Bitcoins acquired by instant trading funds in a short period, he dismisses predictions of a major correction, citing the asset’s growing recognition as digital gold, reinforced by institutions like Carson Group entering the trading fund services arena.
