Bitcoin in accumulation: Crypto expert maps out bearish and bullish scenarios
Public confidence in regulators and the financial system has been negatively affected by the banking crisis that has hit the US as a result of the collapse of SVB and Signature Bank. This has led to investment in alternative assets, and the leading cryptocurrencies such as BTC and ETH have seen a surge in prices.
In the wake of the current crisis rocking the global banking sector, Bitcoin dominance passed 47% in March. Up 15% from the previous week, Bitcoin soared past $28,000, its highest level in nine months.
Some say that Bitcoin seems to be in the period of accumulation, while others strongly disagree and fear that Bitcoin may soon fall. The analysts are confused because the price can change at any time.
Here is an unbiased analysis of bullish and bearish views.
Bullish outlook for BTC
Galaxy Digital is a technology-driven investment company that provides financial solutions that span the digital asset ecosystem. They have outlined a bullish outlook and have said that a major bullish catalyst is on the horizon for Bitcoin (BTC) as accumulation increases.
According to Galaxy Digital, the bullish catalyst is Bitcoin’s fourth halving event set to occur in April 2024. Halving events occur every four years and reduce the amount of new BTC entering the market. The tightening of supply has historically coincided with large movements to the upside in Bitcoin’s price.
Bitcoin’s next halving, scheduled for April 2024, will reduce the network’s inflation rate to less than 1%, with approximately 450 new bitcoins mined each day. The three previous Bitcoin price halves (2012, 2016 and 2020) have historically been credited with launching successive bull runs.
Galaxy Digital also identifies the increasing Bitcoin accumulation as another bullish development. On-chain data indicates that Bitcoin continues to accumulate. The total number of addresses with a balance greater than zero is skyrocketing.
BTC is stored in more than 45 million addresses. Numerous addresses have only received Bitcoin; they never used any of it. In the last month, there have been many more ‘accumulation addresses’, so to speak.
Bearish outlook for BTC
The likelihood that a significant amount of Bitcoin from the defunct cryptocurrency exchange Mt. Gox could flood the market as it is handed over to creditors is the potential trigger for the bearish market. According to September 2019 documents, Mt. Gox bankrupt 141,686 BTC in addition to cash and BCH as a result of the 2014 exchange attack.
The current price of BTC is $28,066 USD with a market cap of $542,440,858,542 USD. This was a balanced view of the bullish and bearish outlook for the market. Such events are likely to regularly affect the price of BTC in the near future.
