Bitcoin smashes $30,000 barrier, crypto titans predict big rally ahead

Bitcoin surpasses $30,000 mark as investors eye end of rate rises

Bitcoin is nearing a crucial technical milestone about a year away, which may potentially spark a sustained uptick in the cryptocurrency's worth.

The forthcoming ‘halving’ for Bitcoin is estimated to take place around April or May 2024, though the exact timing is yet to be determined.

‘Halvings’ reduce the rate at which new coins are created and thus lower the available amount of new supply.

As of Thursday morning, one Bitcoin was valued at roughly $30,200, according to data from CoinGecko. The world's leading cryptocurrency has seen a remarkable increase of over 80 percent since the start of the year.

In the past few weeks, Bitcoin's price has been climbing, driven by an anticipation of the impending halving and the potential for a US Federal Reserve interest rate reduction. They might offset the impact of decelerating growth and constricting credit conditions due to the challenges in the banking sector.

Bitcoin has gained 2% over the last 24 hours.

Reasons behind rally and what the future holds

Speaking to Moneycontrol, leading industry experts weighed in on the reasons behind the price rise and shared their expectations for the future of Bitcoin.

Ruadhan O, the lead developer of Seasonal Tokens said, "Bitcoin’s rate of production was cut into half in 2020. Since then, they have gradually become scarcer."

There are four Seasonal Tokens --Spring, Summer, Autumn, and Winter. They have been designed to increase price in a predictable sequence. For example, prices tend to go up in Spring, then Summer, Autumn, Winter, and Spring again.

He also mentioned that market fears in 2022 delayed the price adjustment. He believes the next major barrier is around $32,000, and if upward pressure continues, "the price could quickly escalate from $32,000 to $35,000, as the bears are forced to cover their short positions."

Furthermore, he anticipates that the entire crypto market is likely to move alongside Bitcoin.

Nischal Gaba, CMO of DefiEdge, acknowledged divided opinions on Bitcoin's recent surge, with some analysts believing it signals the end of the bear market.

However, he also highlighted concerns about the dull trading volume, which some see as a sign that the current rally may be a fakeout.

Gaba emphasised the importance of closely observing BTC's movement in the next few weeks to determine the nature of the price change.

Start of a bull run?

Blake Harris, the Founding Principle of Blake Harris Law, pointed out that factors such as bank failures and government responses by printing more money have made Bitcoin more attractive.

"This does appear to be the start of another bull run," he said.

However, he also cautioned that "if the recession gets worse, we should expect Bitcoin to also drop." Harris believes the next resistance level could be around $70,000, but he expects altcoins to swing in the same direction as Bitcoin, albeit to a lesser extent.

Pavel Matveev, CEO and Co-Founder of Wirex, attributed BTC's move to $30,000 to its return as a non-correlated store of value and changes in centralised exchange BTC dynamics.

He predicts a slight retrace in BTC price in the short term and emphasises the ongoing economic and regulatory challenges that will continue to impact crypto prices.

Gabby Kusz, CEO of the Global Digital Asset & Cryptocurrency Association, believes Bitcoin's rally will continue, with the next resistance level at about $50,000.

She expects altcoins to tip upwards when Bitcoin is up, but to a lesser degree than in previous rallies.

"Given the underlying reason for a Bitcoin rally at this point, it’s clear commodity classification, I would expect altcoins to tip upwards when Bitcoin is up but at a far less degree to which we have seen under previous Bitcoin rallies," she said.

Eric Chen, CEO and Co-founder of Injective Labs, and core contributor to Injective said the surge in the price of Bitcoin could potentially lead to increased interest and investment from both retail and institutional investors.

Chen, however, emphasised the importance of acknowledging the unpredictable nature of the crypto market and the likelihood of continued price fluctuations.

"In terms of what to expect next for digital assets, it's difficult to make concrete predictions. However, there are several trends and developments that could have an impact on the crypto market in the coming months and years. They include increased institutional adoption, regulatory developments, and innovation with new use cases for cryptocurrencies and blockchain technology," Chen said.