The digital currency received a significant boost going into this year, and despite harsh regulatory crackdowns and Fear, Uncertainty, and Doubt (FUD) gripping the industry, the cryptocurrency price remained resilient.
The most significant event in the history of the Bitcoin (BTC) blockchain, the halving event, is now programmed by April 2024, which implies exactly one year to go. While the timeline for this event is often known in advance, the fact that April is here has added to the seriousness of tracking the halving event.
The halving is a network event in which the reward scheme given to miners in the Proof-of-Work (PoW) system that powers the Bitcoin blockchain is halved. Currently, the reward is set at 6.25 per block, and for the next halving, which coincides with block 740,000, the reward will drop to 3,125.
This reduction implies a deflationary trend in the Bitcoin protocol and further lengthens the timeline in which the total supply of 21,000,000 BTC will occur.
Industry Response to Bitcoin Halving
Bitcoin Halving is considered by many experts in the crypto market to be a very important event that solidifies the technological narrative that defends the largest digital currency in the world by market capitalization.
In line with the upcoming Bitcoin halving, Mike McGlone, the senior commodity strategist at Bloomberg Intelligence, has described the year 2024 as very significant for the BTC blockchain. According For the market veteran, there is a high certainty that there will be a compelling global recession within the next year and when the time comes, institutional investors will recognize the alluring appeal of Bitcoin.
“More importantly, what prevents that trajectory? In the big picture of these moves with $10,000 up for grabs, I think a significant amount of bitcoin could now make you lose your hair,” McGlone said in a statement. “The bottom line is that the astute investors, the institutions of the planet feel every day that they need a piece of this wealth. I think by the time we get to 24, at which point, we’ll be talking about a very bad recession, all political Republicans, at least, are leaning toward the president, and it’s going to be a great setup next. year. I’m really looking forward to it,” he added.
The position he took with regard to institutional investors yearning to own a piece of the digital currency is also supported by many other market experts in what many have described as increased demand for an asset whose production will be significantly reduced.
Bitcoin Price Outlook
With the movement of higher demand and lower supply that will usher in the next Bitcoin halving, there is a certainty that the price of BTC will be significantly affected.
The digital currency received a significant boost going into this year and despite the tough regulatory measures and Fear, Uncertainty and Doubt (FUD) that gripped the industry, the price of the cryptocurrency remained resilient.
The digital currency is currently changing hands to $28,434.34, 2% more in the last 24 hours and 71.74% so far this year. With Bitcoin halvings historically known to help BTC price growth, expectations remain that this trend will repeat itself amid enthusiasm that is expected to grow.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-life applications of blockchain technology and innovations to drive mainstream acceptance and global integration of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based sites and media. Benjamin Godfrey is a lover of sports and agriculture.
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