A recent study showed that after the next event of Bitcoin halvingthe value of the cryptocurrency may experience an increase in 1,250% from their current levels.
The emission rate of bitcoins is reduced by about half every four years to ensure that the offer never exceeds its limit of 21 million tokens.
When the blockchain of Bitcoin add your block 840,000which is estimated to will occur on April 21, 2024the reward rate for miners will be halved, from 6.25 BTC to 3,125 BTC.
According to a report submitted by the company Blockware Solutionsbased on historical data, it was consistently observed that previous halvings have acted as a meteoric factor to increase the value of Bitcoin.
In this way, the next “halving” in bitcoin mining rewards, combined with a reduction in the supply available on exchanges, could lead to an increase in the value of the cryptocurrency without precedentseven exceeding the increases observed in previous cycles.
In numerical terms, Blockware forecasts that the halving will leave miners with annual revenues in excess of u$s2,000 million. If the value of Bitcoin is around the $35,000 before the event, a subsequent 12-fold increase could bring its value to around $420,000 per BTC.
The report also highlights the possibility that the market capitalization of Bitcoin reach 12 trillion dollars, thus equating to the value of gold.
Considering a value of $35,000 at the halving date, a maximum cap in this cycle of around $400,000 would break the trend of diminishing returns. This projection seems reasonable given the impact of the $2 billion reduction in miner revenue and the growing scarcity of BTC available on exchanges.
Bitcoin: what to expect in 2024
The abrupt fall that presents Bitcoin today it may be temporary and the value of the asset could return soon to $30,000. However, it is evident that the stability that had characterized the Bitcoin since the end of March it has faded, and now the market is entering a period of increased volatilitysomething more consistent with the history of cryptocurrency.
The movement made by Elon Musk last week did not go down very well with BTC holders. Investors did not react favorably to the decision of Musk and SpaceX to sell his bitcoin package, valued at approximately $373 million.
Musk, via Tesla and his companies, had been one of the main public defenders of Bitcoin. However, his interest in cryptocurrency faded this year due to a fact not directly related to Bitcoin.
Given current interest rates, Bitcoin is not attractive. Currently, there is a shortage of liquidity in the BTC market. Numerous investors and exchanges have reduced their holdings, causing the price to fall.
The global economic outlook can help to understand why many investors are choosing to direct your resources towards other assets. Given the high interest rates, it is possible to earn substantial returns with assets traditionally more stable than Bitcoin.
However, next year will bring a drastic change in the scenario. Despite the recent drop, Bitcoin experiences a period of relative calm. Although there are regulatory challenges, issues related to exchange platforms and market liquidity, there are many factors that could influence the price of cryptocurrency. However, next year will mark a turning point with the halving.
in 2024the value of each Bitcoin block will be halved. This event is inherent to the very nature of cryptocurrency and has historically had an impact on price developments.. This time is not expected to be an exception. However, it is not clear if Bitcoin will be strong enough to experience an explosive increase as on previous occasions.
Source: Ambito
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