Bitcoin (BTC-USD) traded at close to $70,000 on Tuesday, March 5, 2024, at 2 a.m. and again at 2 p.m. Within only an hour, prices fell sharply to as low as $61,448.60. This intraday commentary is nothing new for the most-watched and most widely-held cryptocurrency. Recent speculators who bought BTC through an exchange-traded fund are not familiar with the price swings.
Analysts are everywhere when it comes to forecasting BTC prices this summer. Analysts at JP Morgan (JPM) think that prices will fall to $42,000 after halving. However, halving did not historically have a long-term impact on BTC prices. It would dip or trade flat briefly, only to continue its march to new highs.
Bitwise Asset Management CIO Matt Hougan is optimistic about an extended rally to summer and beyond.
Readers cannot count on either view. BTC price targets are unpredictable. They rise and fall depending on demand and supply levels. Demand remains strong through ETF purchases from retail investors. If a “big whale” with a massive position decides to sell, prices may fall. This depends on the willingness of cryptocurrency investors to buy into the increased supply that day.
Your Takeaway
The euphoric news coverage on bitcoin helps increase investor interest in the market. Long-term holders will ignore the noise this generates. Instead, they will sell if they think prices are too high and buy when prices look attractive.
