Fundstrat Global Advisors, a New York-based financial strategy research firm, recently released its latest price prediction for Bitcoinin the coming months. The analysis received special attention due to the expected surge in cryptocurrency prices.
Fundstrat’s financial strategists hypothesize that there are two main catalysts that could lead to a surge in bitcoin’s value: the upcoming bitcoin halving event in April 2024 and the possible launch of a bitcoin ETF by investment management firm BlackRock.
Essentially, the Bitcoin halving event cuts by 50% the rewards Bitcoin miners receive for validating transactions on the blockchain. A reduced influx of new bitcoins exacerbates the scarcity of the digital asset, thereby exerting upward pressure on prices.
According to Fundstrat, the launch of the BlackRock Bitcoin ETF could lead to a massive spike in daily demand for Bitcoin, estimated at as much as $125 million.
In order to keep supply and demand balanced in this situation, the equilibrium price of the cryptocurrency needs to rise significantly.
A closer look at Fundstrat’s equilibrium analysis reveals that Bitcoin’s pre-halving price was impressively high, in the range of $140,000 to $180,000.