rzelich
If $70,000 isn't enough, how about $115,000?
An imminent reduction in bitcoin (btc-USD) supply growth, known as the halving event, is set to boost the price of the highest-profile cryptocurrency to more than $115,000 in 2024, the company said. crypto tax reporting firm CoinLedger in a recent report. study.
A year after the last two halvings (there have only been three so far), the price of bitcoin (btc-USD) increased by an average of 400%, according to the study, which based its $115,000 price prediction on if the token is at $69k when it halves in April.
A bitcoin (btc-USD) halving occurs as miners (Marathon Digital (NASDAQ: MARÁ), riot platforms (NASDAQ: UNREST), etc.) the reward is halved, essentially reducing the speed at which new tokens are created by 50%. That means the halving (which occurs roughly every four years) reduces the supply of new bitcoins entering the market, a move that could increase the price of the coin if demand remains constant or increases.
The first mining reward was 50 bitcoins (btc-USD). On November 28, 2012, the first halving, the bounty was halved to 25. Thereafter, the bounty was reduced to 12.5 after the halving on July 9, 2016 , and then to 6.25 on May 11, 2020. The next halving, sometime in April, will see the block reward fall 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, according to the report. Similarly, the price rose 82.3% to $15,702 six months after the 2020 halving.
That's an average increase of 67.7% six months after a halving event. “If it followed a similar pattern, then bitcoin could reach a high of $115,733,” CoinLedger estimated. “While this seems like a high estimate, bitcoin has already surprised people in previous bull runs.”
Not everyone is optimistic about 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 deviate to once the tapering-induced euphoria subsides.” half of bitcoin decline after April.”
Speaking of euphoria, bitcoin (btc-USD) briefly surpassed $70,000 on Friday to claim new territory, leaving the token up more than 50% this year and more than 200% year-over-year. The rally has been driven by strong inflows into spot bitcoin exchange-traded funds and the hype around the upcoming halving, as well as rising expectations that the Federal Reserve and other major central banks will begin to cut interest rates in a few months.
But SA analyst D Lombardo warned investors that bitcoin is at a mid-cycle peak and a short-term correction is likely, citing bearish on-chain metrics and soaring sentiment.
Other bitcoin miners: HIVE Digital Technologies (HIVE), Hut 8 (HUT), Bitfarms (BITF), Bit Digital (BTBT), CleanSpark (CLSK), Core Scientific (CORZ).
