VanEck CEO Predicts New all-Time high for Bitcoin Despite Rally

• Despite Bitcoin’s 170% gain this year, VanEck sees potential for further profits, especially with the upcoming halving event in April 2024, which may lead to a reduction in miners’ BTC rewards.
• In the short term, Bitcoin faces selling pressure as it drops below a crucial supply zone between $41,200 and $42,400, with approximately 1.87 million addresses holding 730,000 BTC.

The CEO of global investment manager VanEck, Jan VanEck, foresees new record highs for Bitcoin (BTC) in anticipation of a potential interest rate cut by the Federal Reserve. In a recent CNBC Television interview, VanEck drew parallels between Bitcoin and gold, emphasizing their connection to interest rate cycles. According to the seasoned investor, the historical trend suggests that Bitcoin performs well during periods of declining interest rates.

He highlighted the macroeconomic factors, stating that the stores of value, which don’t yield interest, respond significantly to interest rate movements. VanEck pointed out the current downward trajectory of interest rates, supporting a bullish outlook for both Bitcoin and gold.

Despite Bitcoin’s impressive 170% gain this year, Van Eck believes there are still substantial profits to be made. The investor anticipates new all-time highs within the next year, potentially driven by Bitcoin’s upcoming halving scheduled for April 2024, which will halve miners’ BTC rewards.

Van Eck draws an analogy, likening Bitcoin’s growth to that of a child, emphasizing that previous instances labeled as bubbles, such as in 2017, eventually led to new all-time highs in 2021. With the halving event and positive technical factors, he expects Bitcoin to reach new peak values in the next 12 months. As of the current writing, Bitcoin is trading at $42,034.

Bitcoin (BTC) Price Drops to $40,500 – Short Term View

While analysts have been optimistic about Bitcoin for the long term the cryptocurrency faces some selling pressure as of now. At press time, Bitcoin is trading 3% down at $40,716 with a market cap of $796 billion.

In a recent analysis by renowned crypto analyst Ali Martinez, it has been highlighted that Bitcoin (BTC) has descended below a critical supply zone, delineated between $41,200 and $42,400. Within this range, approximately 1.87 million addresses had amassed a total of 730,000 BTC.

The shift below this zone raises concerns, as it may prompt these holders to sell in an attempt to mitigate potential losses. Martinez advises vigilant monitoring, suggesting that if selling pressure intensifies, there could be a potential downturn toward the subsequent demand zone situated between $37,500 and $38,700. Within this lower range, around 1.28 million addresses are currently holding 553,000 BTC.

Recent on-chain data reveals a notable trend of profit-taking contributing to the deceleration in prices. Bitcoin experienced a substantial influx of $860 million in net deposits into cryptocurrency exchanges over the week, marking the highest level since March, as highlighted by analytics firm IntoTheBlock on Friday. The act of transferring assets to exchanges typically indicates an inclination to sell, suggesting that a considerable number of investors opted to capitalize on gains following Bitcoin’s impressive 65% surge from $27,000 in October.

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