April Bitcoin Halving: Preparing for a Powerful Market Impact
Date: 2024-04-01 Author: Gabriel Deangelo Categories: BLOCKCHAIN
April 2024 will be marked by an event that many cryptocurrency market participants are looking forward to - halving on the Bitcoin network. Expert predictions indicate that this halving will have a much greater impact on the market than previous events of this kind.
Previous halvings: Lessons and Consequences
The chief executive of asset manager Bitwise Asset Management, Hunter Horsley, emphasizes that past halvings have given the Bitcoin market new impetus. It recalls that during the previous halving in 2020, Bitcoin cost approximately $9,000. After reducing the reward for blocks mined per day, the volume of newly created coins decreased by $9 million, and over the year - by $3 billion.
Expected Effect of April Halving
Horsley predicts that the upcoming halving, with Bitcoin priced at around $70,000, will have three times the impact in dollar terms. This means that $32 million fewer coins will be created daily, and $11 billion less per year. At the same time, a decrease in sales volume and an increase in demand for Bitcoin is expected.
Prospects After Halving
Horsley also hints that the halving will lead to a further increase in demand for Bitcoin, exceeding its supply. This imbalance in supply and demand will likely lead to an increase in the value of the cryptocurrency and a renewed bullish rally.
Bitcoin Growth Through ETFs
Matt Hougan, chief information officer at Bitwise, foresees the long-term growth of Bitcoin through ETFs. He notes that if institutional investors allocated at least 1% of their assets to funds based on Bitcoin, then Bitcoin's capitalization would increase by $1 trillion.
Potential Investments in Cryptocurrency
Hougan also expresses his opinion on possible investments in Bitcoin through ETFs. If 2.5% of funds are allocated to cryptocurrency, then Bitcoin's market capitalization will increase by $2.5 trillion. This shows the huge growth potential for Bitcoin and its possible importance in the global economy.
Conclusions:
The April Bitcoin halving is generating a lot of interest in the cryptocurrency community. Expectations of increased demand and decreased supply create a favorable environment for an increase in the value of cryptocurrency. At the same time, the development of ETFs and increased investment in Bitcoin may lead to even more significant changes in the cryptocurrency market in the near future.
