This was predicted by venture capitalist and billionaire Chamath Palihapitiya Bitcoin may witness an unprecedented price raise of up to $500,000. This ambitious forecast is based on the potential for a further bull market Bitcoin’s fourth halving cycle, which took place on April 20, 2024.
Bitcoin will rise to $500,000
Palihapitiya entered the scene worthy of attention discussion regarding the impact of historical halving cycles on the value of Bitcoin. The billionaire investor shared an illustrative price analysis Bitcoin performance and trend patterns after each halving event.
According to Palihapitiya, historically speaking, Bitcoin has reached recent all-time highs after each halving cycle. He emphasized the connection between Bitcoin halving in 2012-2024detailing the cryptocurrency’s price action one month, three months, six months, nine months, 12 months and 18 months after the halving.
Palihapitiya noted that in the first three months after a Bitcoin halving, investors are typically still reassessing the event and its impact on the cryptocurrency market. However, he revealed that 6 to 18 months after the halving, Bitcoin witnessed an exponential price raise, which pushed him to recent all-time highs.
“Bitcoin’s price increased significantly after each halving, with most of the gains realized between 12 and 18 months after the halving,” Palihapitiya wrote.
He revealed that 18 months after Bitcoin’s first halving cycle, the cryptocurrency’s price increased 45 times. After the second halving cycle, Bitcoin increased almost 28 times, and after the third halving it increased almost 8 times.
Based on these halving patternsPalihapitiya forecasts that Bitcoin’s future value will reach $500,000 by October 2025, expecting it to follow a similar trend as previous halving cycles.
BTC can replace gold
In his discussion, Palihapitiya revealed that by analyzing the average patterns of previous Bitcoin halving cycles, the cryptocurrency can potentially peaking rapidly amount of USD 1.4 million. He declared that Bitcoin can completely replace with gold if it reaches this level of appreciation, highlighting its potential to become a digital currency with transaction utility for tough assets.
Based on the averages from the second and third halving cycles, the billionaire investor makes forecasts Bitcoin price is rising to $99,643 six months after the April halving, reaching $238,623 in nine months, $362,997 in 12 months and almost $500,000 in 18 months.
Palihapitiya also revealed several factors that could contribute to Bitcoin’s price rising to $500,000. He stated that it was increasing demand for Spot Bitcoin Exchange Traded Fund (ETF) may have a significant impact on the value of Bitcoin in 2024.
This prediction may have significance considering that Bitcoin has seen a steady price raise in the early part of the year after approval of Spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC). Cryptocurrency the price exceeded $73,000 following the launch of the Spot Bitcoin ETF, which officially set a recent all-time high from 2021.
Featured image created with Dall.E, chart from Tradingview.com
