Bitcoin (BTC) investors have witnessed significant profits over the last week, with the crypto asset gaining 9.34% to trade above $71,000. The market is currently abuzz with expectations of large price gains in the ongoing bull cycle. However, Bitwise CEO Hunter Horsley believes that the upcoming halving event could be the most significant in Bitcoin’s trading history due to a massive decline in the token’s supply.
Horsley predicts that the Bitcoin Halving event scheduled for April 2024 could have profound effects on the supply and demand dynamics of the asset. The last Halving in 2020 saw Bitcoin priced at around $9,000, resulting in a supply reduction of approximately $9 million per day and $3 billion per year. With Bitcoin currently trading near $70,000, Horsley estimates that the upcoming halving could lead to a three-fold increase in supply reduction, totaling $32 million per day and $11 billion per year.
The expected decline in Bitcoin’s supply, coupled with a higher price, is likely to reduce natural selling pressure by miners. Moreover, the rising institutional demand for Bitcoin adds to the bullish sentiment surrounding the cryptocurrency. Horsley’s analysis points towards a potential price surge following the halving event, with the CEO previously predicting a $250,000 price target driven by investor demand, particularly with the introduction of a Bitcoin spot ETF.
As of the latest data, Bitcoin is exchanging hands at $70,000, with a minor loss of 0.65% over the last day. Despite this, the digital asset has gained 10.45% on its monthly chart following a price correction in February. Bitcoin’s trading volume has decreased by 23.16% to $24.67 billion, with a market capitalization of $1.1 trillion, solidifying its position as the largest cryptocurrency in the world.
The upcoming Bitcoin halving event in April 2024 is expected to have a substantial impact on the cryptocurrency’s price. With a significant reduction in supply and growing institutional demand, Bitcoin could see a massive price surge in the coming months. Investors are advised to stay informed and conduct thorough research before making any investment decisions in the volatile cryptocurrency market.
Disclaimer: The information provided in this article is for educational purposes only and does not constitute financial advice. Readers are encouraged to perform their own due diligence before engaging in any investment activities to mitigate risks associated with market fluctuations.
