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Halving is the Key to Bitcoin’s 7-month Winning Streak

Bitcoin enthusiasts are gearing up for what could be a promising April, fueled by optimism surrounding the cryptocurrency’s performance. A recent report from 10x Research highlights several factors indicating a potentially robust month ahead for Bitcoin.

One notable aspect is Bitcoin’s impressive streak of seven consecutive months of upward movement. This sustained rally, as noted by 10x Research, is unprecedented and suggests a bullish trend in the cryptocurrency market. However, historical data indicates that such prolonged growth periods have often been followed by temporary declines near halving events.

The upcoming Bitcoin halving, slated for around April 20, is a significant event that could further influence Bitcoin’s price trajectory. While Bitcoin has already exceeded 10x Research’s projected return of 27% for the pre-halving period, the report suggests that there may still be room for additional growth leading up to the halving itself. Historically, the two months preceding a halving have seen an average rally of 32%, with the last two halvings boasting even more impressive average returns of 47%.

Beyond the halving, April has historically been a strong month for Bitcoin. Analysis reveals that six out of the past ten Aprils have resulted in positive returns for Bitcoin, with an average gain of 12%. This trend is particularly encouraging considering Bitcoin’s historical tendency to perform strongest in the fourth quarter, with the first quarter often presenting challenges.

In addition to Bitcoin’s performance, the report also addresses the valuation of companies heavily invested in Bitcoin, such as MicroStrategy. 10x Research suggests that MicroStrategy may be overvalued based on its current stock price, estimating a fair value closer to $1,000 per share, significantly lower than the current range of $1,700 to $2,000.

Looking ahead, the potential impact of the halving and the future performance of companies like MicroStrategy are expected to be hot topics of discussion at Benzinga’s upcoming Future of Digital Assets conference, scheduled for November 19th. This event will likely provide valuable insights into the evolving landscape of digital assets and their role in the broader financial markets.

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