The fourth Bitcoin halving has recently taken place, and crypto enthusiasts eagerly anticipate its impact on Bitcoin’s and other digital currencies’ prices. As Bitcoin is the largest cryptocurrency, the value of most alternative coins tends to follow suit, making this event significant for all investors.
Based on the perspective of Matt Hougan, Chief Investment Officer at Bitwise Asset Management, the recently completed Bitcoin halving offers a potential purchasing chance for cryptocurrency investors.
Is Bitcoin Halving A ‘Buy The News’ Opportunity?
In simpler terms, Bitcoin insiders eagerly await the halving process. During an interview on CNBC Squawk Box, Hougan expressed his belief that Bitcoin’s price will significantly increase following each halving event. This makes it a favorable time for investors to buy into Bitcoin, particularly from a long-term perspective.
Hougan examined Bitcoin’s price trend following the halving event, observing its significant surge during the ensuing year. He attributes this price hike primarily to the reduced supply of coins entering the market post-halvings.
“Hougan stated that the inflow of new Bitcoin into the market is being reduced by half, equivalent to a $11 billion annual decrease. In the long term, this reduction should positively impact the price.”
When questioned about the possibility of Bitcoin serving as a value store during geopolitical conflicts, specifically in the Middle East, Hougan emphasized its potential in the broader context.
Looking at the broader perspective, it has effectively shielded us from inflation since the COVID-19 pandemic. In my opinion, it will prove beneficial as a safeguard against future geopolitical turmoil.
What’s Next For Bitcoin?
The recently concluded Bitcoin halving saw the rewards given to miners slashed from 6.25 BTC to 3.125 BTC. The idea and design behind each halving are pretty simple. With fewer new bitcoins entering circulation, existing bitcoins could become more valuable. In each of the three previous halvings, the price of bitcoin fluctuated in the first few months, but it ended up being much higher one year later
The cost of Bitcoin remained relatively stable for approximately nine months following the 2020 halving, but later experienced a significant increase of around 458%. Based on historical trends, a comparable surge could potentially raise Bitcoin’s price to roughly $345,000 during the first quarter of 2025.
As I pen this down, Bitcoin is being bought and sold for roughly $64,870. This digital currency has seen an increase of more than 130% since the start of the year, preceding the recent halving event. Should Bitcoin follow a comparable pattern after the halving, its value could reach approximately $150,000 by mid-2025.
It’s worth noting that Anthony Scaramucci, the founder of SkyBridge Capital, believes the Bitcoin price will hit a minimum of $170,000 during this market cycle – an intriguing forecast given the current price range.
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2024-04-21 18:11