The approval of the Bitcoin ETF triggered a crypto market surge that pushed Bitcoin to new highs. Amidst the rally, manias have emerged, including the explosion of memecoins. However, over recent weeks, Bitcoin’s price lost some of its momentum. It now ranges just below its All-Time High. The billion dollar question for traders is where this bull market will go next.
What is unusual about this rally is that it happened before a Bitcoin halving. The halving, an event that occurs every four years and cuts the Bitcoin issuance rate in half, historically led to significant market gains. Yet, the next halving will only happen later this month.
Some traders predict that the ETF pulled this cycle ahead. That would mean that the current phase is one of accumulation. Momentum will propel Bitcoin towards the $100k price point. Retail traders would join the party en-masse. The market would see its next blow-off top before going back into a bear market hibernation.
Others believe that the market has stretched too thin already. They expect the halving to be a sell-the-news event with Bitcoin then breaking down. A more sustained bull market would resume later in the year. This would be the more classical route of crypto bull markets. All this assumes that no black swan events strike. Clearly, decision-time is approaching.