rzelich
If $70,000 isn’t enough, how about $115,000?
An impending reduction in bitcoin (BTC-USD) supply growth, known as a halving event, is poised to push the price of the highest-profile cryptocurrency to above $115,000 in 2024, the company said in a recent article cryptocurrency tax reporting tool CoinLedger. study.
A year after the last two halvings – there have been only three so far – the price of bitcoin (BTC-USD) has risen by an average of 400%, according to the study, which based its $115,000 price prediction on the fact that the token will be at $69,000 when it halves in April.
A halving of bitcoin (BTC-USD) occurs when miners (Marathon Digital (NASDAQ: MARA), Riot control platforms (NASDAQ: RIOT), etc.) the reward is halved, essentially reducing the rate at which new tokens are created by 50%. This means that the halving – which happens about every four years – reduces the supply of new bitcoins entering the market, a move that could drive up the price of the coin if demand remains constant or increases.
The first mining reward was 50 bitcoin (BTC-USD). On November 28, 2012, during the first ever halving, the reward was halved to 25. From there, the reward was lowered to 12.5 after the halving on July 9, 2016, and then to 6.25 on the 11th. May 2020. the next halving, at some point in April, will see the block reward drop to 3.125.
In 2016, the price of bitcoin (BTC-USD) jumped to $986 six months after the halving, a 51.6% increase from $650 on the day of the event, the report said. Likewise, the price increased 82.3% to $15,702 six months after the 2020 halving.
This is an average increase of 67.7% six months after a halving event. “If it follows a similar pattern, Bitcoin could hit a high of $115,733,” CoinLedger estimated. “While this seems like a high estimate, Bitcoin has already shocked people in previous bull runs.”
Not everyone is bullish on the halving catalyst. JP Morgan analyst Nikolaos Panigirtzoglou believes bitcoin (BTC-USD) could fall to $42,000 after the event, a “level we expect bitcoin prices to move towards once the halving-induced euphoria of the bitcoin will have eased after April.”
Speaking of euphoric, bitcoin (BTC-USD) briefly surpassed $70,000 to conquer new territory on Friday, leaving the token up more than 50% this year and more than 200% y/y. The rally was fueled by strong inflows into Bitcoin spot exchange traded funds and hype about the impending halving, as well as strengthened expectations that the Federal Reserve and other major central banks will begin cutting interest rates in a few months.
But SA analyst D Lombardo warned investors that bitcoin is at a mid-cycle peak and that a near-term correction is likely, citing on-chain bearish metrics and sky-high sentiment.
Other bitcoin miners: HIVE Digital Technologies (HIVE), Hut 8 (HUT), Bitfarms (BITF), Bit Digital (BTBT), CleanSpark (CLSK), Core Scientific (CORZ).