A new report suggests that Bitcoin BTC/USD might be on the brink of a significant rally by the end of 2024 or early 2025, driven by historical halving cycle trends and changing market conditions.
What Happened: A report by Canaccord points out that we are now 163 days post the latest Bitcoin halving.
Historically, Bitcoin rallies have tended to start 6-12 months after these halving events, indicating the potential for an uptrend if this pattern holds .
Analysts at Canaccord maintain a positive outlook on Bitcoin, noting, “The halving cycle psychology could portend more bullish times ahead.”
They believe that favorable supply-demand dynamics post-halving, coupled with current market conditions, could lead to an upward price movement in the coming months.
Bitcoin’s price has remained steady, pushing past previous resistance levels around $60,000, while its network security, evidenced by new all-time highs in hash rate, continues to improve .
Regarding Ethereum ETH/USD, the launch of spot ETH ETFs has been identified as a long-term catalyst.
Also Read: The Dollar Is Weakening—Here’s Why That Could Be Good For Bitcoin: 10x Research
These ETFs are expected to facilitate wider adoption and reduce regulatory uncertainty.
However, the report acknowledges Ethereum's short-term underperformance compared to Bitcoin.
It states, “Ethereum once again underperformed Bitcoin in Q3, but outperformed most other asset classes YTD, up 60%+.”
This underperformance is attributed to lingering concerns about use case development and competition from alternative Layer-1 networks .
Despite the mixed short-term performance of Ethereum, the launch of these ETFs is seen as a significant step toward institutional adoption.
Canaccord analysts believe that ETFs help Ethereum differentiate itself from other Layer-1 networks and enhance investor interest and developer activity .
What’s Next: As the market eagerly watches for a possible rally, discussions like these will be pivotal at Benzinga’s Future of Digital Assets event on Nov. 19, where key market players will shed more light on cryptocurrency trends and forecasts.
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