The past week saw a significant increase in Bitcoin (BTC) prices, with the crypto asset surging by 9.34% to trade above $71,000, according to data from CoinMarketCap. This upward trend has left many BTC investors excited about the potential for large price gains in the current bullish cycle. However, amidst these optimistic forecasts, Bitwise CEO Hunter Horsley has warned of a game-changing event on the horizon – the upcoming halving event.
The Significance of Bitcoin Halving in Trading History
Horsley emphasized that the upcoming halving event, scheduled for April 2024, could have a profound impact on Bitcoin’s supply and demand dynamics. Bitcoin halving occurs every four years, leading to a reduction in the block reward for BTC miners by half. The Bitwise CEO drew comparisons to the previous halving in 2020 when Bitcoin was priced at approximately $9,000. Following the halving, the token supply decreased significantly, equivalent to around $9 million per day and $3 billion per year. In light of Bitcoin’s current price of around $70,000, Horsley predicts that the impending halving could trigger a supply reduction of over $32 million per day and $11 billion per year.
Implications of Higher Bitcoin Prices
With Bitcoin’s price on the rise, Horsley anticipates a substantial decrease in natural selling pressure by miners due to the expected reduction in supply. Additionally, he highlights the growing institutional demand for Bitcoin, suggesting that these factors could pave the way for a significant price surge post the halving event. Earlier predictions by Horsley indicated that Bitcoin could reach $250,000 sooner, driven by increased investor demand following the introduction of the Bitcoin spot ETF. As of now, Bitcoin is trading at $70,000, experiencing a slight 0.65% loss on the last day but showing a 10.45% increase on its monthly chart after the price correction in February.
Despite the positive momentum in Bitcoin prices, the trading volume has decreased by 23.16%, currently valued at $24.67 billion. With a market capitalization of $1.1 trillion, Bitcoin remains the largest cryptocurrency globally. On the hourly chart, BTC is exchanging hands at $69,960, reflecting fluctuations in the market sentiment. The featured image from Forbes and chart analysis from Tradingview provide additional insights into the current state of the crypto market.
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