Inevitable growth after halving: Bernstein analysis
Date: 2024-04-18 Author: Oliver Abernathy Categories: BUSINESS
According to analysts from Bernstein, the Bitcoin halving event itself is not a direct catalyst for a change in demand. However, market factors, such as a decrease in the supply of BTC, can become drivers of growth in its value. The imbalance between supply and demand is expected to increase over time.
After the halving, approximately 7% of the Bitcoin network hashrate is expected to go offline as less efficient miners face unprofitability. This will reduce the available supply of BTC. However, experts predict the situation will normalize after the process of consolidation in the mining market.
Historical trend and expectations
Past cycles show that Bitcoin price increases usually occur after halving. Analysts predict this will happen this time too, especially given the expected correction in mining hashrate and renewed liquidity in ETFs.
Bernstein predicts that the price of Bitcoin could reach $150,000 by the end of 2025. This is in line with their earlier forecast that the market capitalization of Bitcoin will be $3 trillion by the same time.
