I’m going to say something you may find shocking.
But the world’s most predictable financial market is… crypto.
Yes, the market famous for euphoric bull markets and painful bear markets is the most predictable on the planet.
I’ve told you before how certain indicators – like the net unrealized profit and loss (NUPL) – are incredible timing indicators when it comes to crypto.
But the Bitcoin halving coming on April 20 is even more important.
The Fourth Bitcoin Halving
There have been three major bull markets in crypto…
- 2012-2013
- 2016-2017
- And 2020-2021.
People who bought at the beginning of these bull markets made huge money.
People who bought at the end lost big.
But people who bought right after a bitcoin halving always made money.
Why does a halving create these bull runs?
It’s simple.
Supply and Demand
A Bitcoin halving is pretty straightforward, as I wrote about here.
Satoshi Nakamoto, the enigmatic creator of Bitcoin, designed the currency with a finite supply in mind. Embedded in Bitcoin’s code is a mechanism that halves the rate at which new bitcoins are created every four years or so.
Thus the term “halving.”
It’s a built-in scarcity feature. Cutting the supply of something in half tends to drive its price up. It’s Economics 101: lower supply with steady demand usually leads to higher prices.
This principle isn’t just theoretical – it’s been historically proven. After each of Bitcoin’s halvings, we’ve witnessed substantial bull runs.
For instance, after the first halving in 2012, Bitcoin’s value skyrocketed from just $12 to over $1,000.
Fast forward to the 2016 halving, and we saw Bitcoin jump from $663 to a peak of $19,118 about 18 months later.
And let’s not forget the 2020 halving, which propelled Bitcoin from $8,500 to a whopping $64,000 in the following year.
Imagine if gold or oil production was cut in half every four years.
You would expect major price increases every time.
And that’s exactly what happens following every single bitcoin halving.
Profiting From the Bitcoin Halving
This is not an opportunity to take lightly.
These types of gains simply do not exist in the realm of stocks, real estate, gold or any other investment.
It is only available in crypto.
And it will only be available for the next 12 to 18 months.
So how do you profit from it?
Buying Bitcoin is the most straightforward strategy. I bought Bitcoin several times in 2020 for as low as $7,933, only to sell it later at highs of $47,964 – a tidy profit.
But I believe bitcoin will go even higher this time.
My own projection – based on the size of past historical moves – is that bitcoin will pass $100,000 and move up to $165,000 per coin during this halving cycle.
And I’m not alone in this. Goldman Sachs set its price target at $100,000. JPMorgan has predicted bitcoin’s long term price could go up to $150,000. British multinational bank Standard Chartered is predicting it will hit $200,000 in 2025. And tech investor Cathie Wood, manager of the Ark Invest Fund, pegged the upward move as high as $560,000 per coin.
So if you buy bitcoin, you could see a very gain over the course of just 18 months…
But here’s a pro tip: While Bitcoin itself is likely to see significant growth, altcoins typically experience even more explosive returns post-halving. That’s where the real action is.
The crypto market is gearing up for another exhilarating ride. Don’t sit this one out.
If history is any indicator, we’re on the cusp of something big.
— Robert Ross
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Source: Total Wealth