Bitcoin could be worth over $75,000

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Cryptocurrency markets have been hit hard lately, but some are predicting bitcoin could be heading into another golden era.

Do Kwon has been accused by Montenegrin authorities of attempting to travel with false documents as the United States and South Korea rushed to extradite him.

After the cryptocurrency markets took a beating last year, the coin’s value fell to around US$30,000 (AUD$45,000), but it surged back, climbing 67% since the end of last year.

It also jumped nearly 15% as banking chaos gripped the global financial system as a number of US banks collapsed.

Now, a process known as the halving, which will reduce the number of tokens available, could see bitcoin’s value skyrocket by at least 81%, according to Bloomberg Intelligence and Matrixport.

A process called halving could help the value of bitcoins rise again. Photo: Ina Fassbender/AFP

Occurring approximately every four years, the halving is where the reward for mining new blocks is halved – part of the process of capping the supply of bitcoins at 21 million tokens. .

It will take place in April next year and has happened three times before – seeing bitcoin’s value hit new highs each time.

However, interest rate hikes and a US regulatory crackdown on crypto following the dramatic crash of the FTX exchange in November last year could hamper the increase.

“If the FTX crash was indeed the low of this cycle, then history would suggest that we still have about 350 days of ‘accumulation’ before we see the characteristic price action after the halving.” , said Jacob Joseph, an analyst at CCData. Bloomberg.

Bitcoin’s all-time high price sits at US$69,000 (A$103,000), which was reached in November 2021, and some analysts have predicted it could reach just over US$65,000 (A$97,000). ) by April 2024, more than double the current price.

The collapse of the Sam Bankman-Frieds FTX crypto exchange could prevent bitcoins from returning to their previous all-time high. Photo: Spencer Platt/Getty Images/AFP

“Bitcoin may hit a new all-time high again in the future, however, it is unlikely to experience the same growth as previous cycles due to increasing market size and competition from other digital assets,” Mr. Joseph said.

But the popular crypto recently fell just over US$19,700 (A$29,553) in March.

Bitcoin’s price also took a hit after a US regulator, the Commodity Futures Trading Commission (CFTC), sued Canadian businessman Changpeng ‘CZ’ Zhao and the company he co-founded, Binance.

The regulator alleges that Binance attempted to “abuse and actively attempt [to] circumvent” CFTC requirements.

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