Benzinga - Research group Pantera Capital suggests that Bitcoin (CRYPTO: BTC) could skyrocket to nearly five times its present value by 2025 following the commencement of its halving cycle next year, Business Insider reported.
The firm’s analysts continue to hold a bullish stance for the leading cryptocurrency. They indicated that historical patterns point to substantial growth potential.
“Bitcoin has historically bottomed 477 days prior to the halving, climbed leading into it, and then exploded to the upside afterwards. The post-halving rallies have averaged 480 days – from the halving to the peak of that next bull cycle,” the report by Pantera Capital noted.
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Halving for Bitcoin, which transpires every four years, is an event that halves the reward crypto miners receive, creating a scarcity effect as outlined in Satoshi Nakamoto‘s original whitepaper.
The next halving is anticipated in April 2024, when miners’ rewards will decrease from 6.25 bitcoin per block to 3.125.
“If history were to repeat itself, the next halving would see bitcoin rising to $35k before the halving and $148k after,” the report noted.
Joe Kelly, CEO of financial services firm Unchained, also predicts a steep increase in Bitcoin value post-halving. He noted that the cryptocurrency experienced gains of 8,069%, 284%, and 559% respectively, 12 months after the 2012, 2016, and 2020 halvings.
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