Will Bitcoin Rally Following Halving Event?

Bitcoin halving is a scheduled event that takes place every almost four years and its main result is to lower the reward for miners in order to validate transactions by fifty percent. The protocol of Bitcoin includes this method to limit the rate of inflation and guarantee a limited number of 21 million coins.

After Bitcoin exchange-traded funds (ETFs) were approved on January 10, 2024, the cryptocurrency saw a 60% increase this year, hitting an all-time high of $72,000 this month. Right now, everyone is focused on the impending halving event and how it might affect the price trend of cryptocurrencies.

It is expected that the impending halving event would cause the price of Bitcoin to rise. The underlying principles of halving, which drastically reduces the amount of new Bitcoins that can enter the market, give rise to this expectation. The fundamental economic theory of supply and demand indicates that Bitcoin’s price is likely to increase if there is a sustained or growing demand for the cryptocurrency and fewer coins are being produced and put into circulation.

Events involving capital halving also attract a lot of interest from investors, which boosts trading activity. As the halving draws near and takes place, this increased curiosity frequently has a favourable effect on the price of Bitcoin. It is plausible to anticipate that halving events will continue to push the price of Bitcoin upward based on historical data, market dynamics, and expert opinion.

The prognosis for the price of Bitcoin following the 2024 halving event on April 19 seems promising, with a number of factors possibly influencing its increase. Experts appear to be enthusiastic, as seen by recent forecasts indicating that Bitcoin would set a new all-time high in 2024 and average a top price of $87,875. The event economics of halving reinforces this prediction, indicating a decrease in supply.

Future events that might occur, like the Federal Reserve lowering the benchmark rate, might cause more money to flow into Bitcoin. The majority of panelists think that now is the best time to purchase Bitcoin, demonstrating general trust in the cryptocurrency’s long-term potential, despite some experts warning that it may still be seen as a speculative bubble.