Could Bitcoin Hit $100,000 in 2023? Majority Of Fund Managers Predict, Based On Survey
Bitcoin's third halving, a once-every-four-years occurrence and the most anticipated event this year in the crypto sector is just around the corner as its mining reward will decline from 12.5 BTC per block to 6.25 BTC at block 630,000, which is expected to be mined on May 12 based on the current difficulty adjustment period of two weeks and the average block mining time of 10 minutes.
In a report released Tuesday, Fundstrat Global Advisors' head of research and managing partner Thomas Lee noted that after the previous two halvings - in 2012 and 2016 - Bitcoin's price rose +188 percent and +312 percent respectively in the six months following those events.
However, the price swings have been wider in recent years compared with those that followed the 2012 halving. For example, Bitcoin was up +141 percent four months after the second halving before seeing a correction that lasted until December 2016.
"Bitcoin Halving may be an event that creates a positive narrative/momentum for bulls," Lee said. "This bullish price action is particularly strong leading up to the event."
But Fundstrat's target of $100k implies a further upside of more than 800 percent from current levels near $8,500, meaning investors must endure nearly a year of corrections.
Digital assets have been growing rapidly in the last decade, with Bitcoin being the pioneer of the movement. Now, the major use cases are cryptocurrencies such as Bitcoin and Ethereum, and the digital assets that are created on the protocols of the two largest blockchain networks.
However, it seems like this is just the tip of the iceberg, so to speak. Experts forecast that in 2030, there will be around $10 trillion worth of digital assets in circulation – 1,000% from today’s level.
The rise of cryptocurrencies and digital assets is mostly driven by their performance against fiat currencies this year.
As for Bitcoin alone, it has risen by almost 150% in 2020. This year was an eventful one for BTC – this May marks its third block reward halving event since inception.