The Fourth bitcoin Halving bitcoin/halving-block-bitcoin-840000/” target=”_blank” rel=”noopener nofollow”>has already been completed and crypto investors bitcoin/fourth-bitcoin-halving-completed/” target=”_blank” rel=”noopener nofollow”>we wait for your result in terms of the price of bitcoin and other cryptocurrencies. As the largest crypto asset, the price of most altcoins is largely correlated with that of bitcoin, making the halving event very important for all investors.
According to Matt Hougan, CIO of crypto index fund provider Bitwise Asset Management, the just-concluded bitcoin halving presents a buying opportunity for crypto investors.
bitcoin Halving as an Opportunity to “Buy News”?
bitcoin halving events are highly anticipated in the cryptocurrency world. While speaking in bitcoin-prices-will-rally-substantially-after-this-weeks-halving-says-bitwise-cio-matt-hougan.html” target=”_blank” rel=”noopener nofollow”>an interview with CNBC Squawk BoxHougan noted that bitcoin prices will rise substantially after the halving, making it a “buy the news” event, especially when looking at the long term.
Hougan continued to analyze bitcoin's price action in the months following the halving, noting how the asset's price recovered substantially in the year following the last three halvings. Hougan attributes this price increase to a shortage of supply in the months following the halvings.
“The amount of new bitcoin supply entering the market is halving. We are eliminating $11 billion of annual supply. I think the overall picture has to be good in terms of price and that's what I expect over the next year,” Hougan said.
When asked about the potential of using bitcoin as bitcoin-news/inflationary-concerns-rise-as-us-cpi-exceeds-predictions-bitcoin-price-reacts/” target=”_blank” rel=”noopener nofollow”>store of value between geopolitical tensionsparticularly in the middle EastHougan noted that the ability of crypto is best seen in the bigger picture.
“If we look at the big picture, we have done a great job of protecting ourselves against post-COVID inflation. I think it will eventually be a good hedge against geopolitical disruptions,” Hougan said.
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Total crypto market cap currently at $2.339 trillion. Chart: TradingView
What's next for bitcoin?
He bitcoin/bitcoin-halving-could-catalyzed-100000-price-surge-bitwise-ceo/” target=”_blank” rel=”noopener nofollow”>bitcoin Halving Recently Concluded Rewards given to miners were reduced from 6.25 btc to 3.125 btc. The idea and design behind each halving is quite 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 ended up being much higher a year later.
For example, the price of bitcoin held steady for at least nine months after the 2020 halving before finally experiencing a 458% price surge. If history were to repeat itself, a similar 450% increase would put the price of bitcoin around $345,000 in the first quarter of 2025.
At the time of writing, bitcoin is trading at $64,870. Currently, bitcoin is up over 130% in the annual period leading up to the just concluded halving. A similar 130% year-on-year increase after the halving puts the price of bitcoin at around $150,000 by mid-2025.
Interestingly, this price range suits Anthony Scaramucci, founder of SkyBridge Capital, better. who predicted btc price would reach at least $170,000 by the end of the current market cycle.
Featured image from Pixabay, TradingView chart
