Bitcoin‘s halving is a significant occurrence in the cryptocurrency market, happening approximately every four years after 210,000 blocks are mined. The primary goal is to decrease the production of new coins by half. Historically, Bitcoin‘s price has experienced growth following these events. To date, there have been three halving occurrences in 2012, 2016, and 2020. The upcoming fourth halving, predicted for April 20, 2024, will result in a reduction of 14,000 Bitcoins issued monthly. As Bitcoin enthusiasts and investors eagerly anticipate price increases, a contentious discussion has emerged regarding the impact of this event on Bitcoin’s price. In this article, we will explore the reasons behind the uncertainty surrounding the halving’s influence.
Bitcoin Halving Will No Effect on Bitcoin Price
According to a recent analysis by CryptoQuant, the effect of Bitcoin’s halving on its price seems to be waning, and instead, market demand is becoming more influential. Since the 2020 halving event, there has been a substantial surge in Open Interest for Bitcoin, with significant buying interest coming from investors possessing between 1,000 and 10,000 Bitcoins.
The existing difference between demand from long-term holders and supply is at its highest level ever, which reinforces the belief that the halving might not affect Bitcoin’s price as much as expected. Even with the decrease in monthly issuance after halving, the demand from long-term holders is still high, which could counteract any negative impact on price.
The monthly issuance of Bitcoin now accounts for only 4% of the total supply, marking a significant reduction from past halvings. Prior to the first, second, and third halvings, the distribution was 69%, 27%, and 10% respectively. After the halving in 2016, Bitcoin’s price rose by 4,200% to reach $19,800, and following the halving in 2020, there was a nearly 683% surge in price to hit $69,000. The next halving will cut block rewards in half from 6.25 Bitcoin to 3.125 Bitcoin. At present, Bitcoin is valued at $68,764, reflecting a 7.12% rise in the last 5 days.
Bitcoin Price Will Rise After Bitcoin Halving
Investors have high hopes for the upcoming Bitcoin halving on April 20, anticipating a potential increase in Bitcoin’s price. The current Open Interest in Bitcoin stands at $78.36 billion, which is 30 times higher than it was before the May 2020 halving. This shows a rise in market activity and traders’ feelings.
Rekt Capital, a crypto trader and analysts asserts that Bitcoin is in consolidation phase, and any decrease in its price will quickly bounce back, labeling it as normal behaviour before halving. He highlights that this is a good time to gather patience and buy at a discounted price, as it may be the last time BTC would have such a decrease in price in 2024.
This is because Bitcoin will soon transition into a period of price discovery. The final stage of the Bitcoin halving cycle, as explained by Rekt Capital, is known as the Parabolic Uptrend. This stage comes after a time of consolidation and is defined by a notable and quick rise in the price of Bitcoin. Usually, the graphs indicate a breakaway from the preceding stagnant phase, where the color green represents this robust upward trend.
During a parabolic surge, the price of Bitcoin dramatically goes up, often reaching new peak values. This price rise ignites great anticipation among investors, suggesting an extremely bullish market sentiment. As more people get caught up in the hype, demand for Bitcoin skyrockets and buying becomes a frenzy. In essence, the parabolic trend symbolizes a time of rapid expansion and heightened excitement in the Bitcoin market, driven by factors such as scarce supply due to halving, burgeoning popularity, and speculation.
Market Performance of Bitcoin Price
The price of Bitcoin surpassed $69,000 for the first time in three days, peaking at $72,715.36. However, this triumph was short-lived as the coin dipped back and is now trading at $69,009.57, a 1.55% decrease from the previous day. Despite this minor setback, Bitcoin has achieved a remarkable growth of over 143% in the year to date. It continues to dominate the crypto market as the largest cryptocurrency with a market capitalization of $1.36 trillion, according to CoinMarketCap. Trading volume for Bitcoin has decreased by 13.11%, amounting to $33.77 billion in the past 24 hours.
Conclusion
There’s ongoing discussion about how Bitcoin halving impacts its price. Some believe that increasing demand and market shifts are primarily responsible for Bitcoin’s price movements, while others maintain that the event itself is significant. Bitcoin’s price has shown remarkable strength in the face of challenges. The future direction of Bitcoin will be influenced by a range of factors including economic conditions, adoption rates, and investor sentiment, as it remains the front-runner among cryptocurrencies.
Read More
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- BCH PREDICTION. BCH cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- Best Goomba Characters In Mario Games, Ranked
- SOL PREDICTION. SOL cryptocurrency
- USD RUB PREDICTION
- Pokemon Fan Shares Adorable Twin Umbreon Rug
- USD COP PREDICTION
- METIS PREDICTION. METIS cryptocurrency
2024-04-10 20:04