Over the past week, Bitcoin (BTC) investors have made a lot of profit as the crypto asset gained 9.34% to trade above $71,000. based on data from CoinMarketCap. Currently, most of the BTC market is highly expectant regarding the potential large price gains that the current bull cycle could present.
However, commenting on the immediate future, Bitwise CEO Hunter Horsley stated that the upcoming halving event – a key part of the bull cycle – could be the most significant in Bitcoin’s trading history as a result of a decline. imminent massive on the token. to supply.
Bitcoin price will have an impact on reducing the supply and demand of tokens – CEO of Bitwise
On a post to X on March 29, Hunter Horsley shared that the Bitcoin Halving event scheduled for April 2024 could have the most profound supply and demand effects ever recorded in the asset’s history. For context, Bitcoin halved is a phenomenon that occurs every four years in which the block reward for BTC miners is halved.
Bitcoin’s April 2024 halving could be the most impactful we’ve seen yet. Why?
In the last Bitcoin halving, in 2020, Bitcoin was at approximately US$9,000. Therefore, the reduction in supply in dollar terms was approximately $9 million per day and approximately $3 billion per year.
This halving with Bitcoin ~$70,000, will be >3x bigger in terms of $: ~$32 million a…
-Hunter Horsley (@HHorsley) March 29, 2024
Horsley began his prediction by referring to the last halving in 2020, during which the price of BTC was approximately $9,000. The Bitwise CEO stated that Bitcoin experienced a significant decline in token supply following the Halving effect, worth ~$9 million per day and ~$3 billion per year.
Considering that the price of Bitcoin currently hovers around $70,000, Horsley believes that the expected supply reduction will likely be at least three times greater in dollar terms and is estimated to be $32 million a day and $11 billion.
With a higher Bitcoin price, Horsley predicts that the expected massive decline in Bitcoin supply will be accompanied by a greater decrease in natural selling pressure from miners. Furthermore, the Bitwise CEO notes that this development will be concise with the current increase in institutional demand.
Generally, all the factors highlighted by Hunter Horsley indicate that Bitcoin is likely to experience a magnanimous price rise after the Halving event. In early February, the head of Bitwise foreseen BTC could reach $250,000 sooner as a result of investor demand driven by the introduction of the Bitcoin spot ETF.
BTC Price Overview
At the time of writing, BTC is trading at $70,000 with a loss of 0.65% in the last day. The widely acclaimed “digital gold” is now up 10.45% on its monthly chart following the price correction in February,
Meanwhile, BTC trading volume has decreased by 23.16% and is valued at $24.67 billion. With a market worth US$1.1 trillion, Bitcoin is classified as the largest cryptocurrency in the world.
BTC trading at $69960 on the hourly chart | Source: BTCUSDT chart on Tradingview.com
Featured image from Forbes, chart from Tradingview
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