How Will the 2024 Halving Affect BTC?
The 2024 Bitcoin (BTC) Halving is expected to have significant impacts on the crypto market. In particular, analysts provide insight into its impact on Bitcoin’s price trajectory. Comments from analysts Rekt Capital, Robert Kiyosaki, and Bitwise CEO Hunter Horsley provide valuable perspectives on this matter.
How Will the 2024 Halving Affect Bitcoin Price?
In a recent YouTube video, Rekt Capital’s analysis outlines the phases of the Bitcoin Halving, comparing the 2024 cycle with the 2020 and 2016 cycles. The pre-Hallowing negative phase, characterized by a pullback in Bitcoin price, has also been observed in previous cycles. . Similarly, the pre-Hallowing rally phase, marked by new all-time highs, precedes the Halving event.
Historical trends show that the pre-Halving rally usually begins around 60 days before the Bitcoin Halving event, leading to an increase in the BTC price. However, as observed in the current cycle, a recent pullback of around 18% indicates a transition from the pre-Hallowing rally to the final pre-Hallowing pullback phase.
This phase has historically involved a pullback, with its depth ranging from approximately 19% in 2020 to 29% in 2016. The recent pullback, similar to previous cycles, points to elements of Bitcoin borrowing from different periods. Additionally, Robert Kiyosaki’s statement emphasizes the importance of the Halving event due to his immediate investment in Bitcoin.
He advocates purchasing even small amounts of Bitcoin, citing the potential for the value to appreciate after the halving. For this, he recommends investing in Satoshi or the newly launched Spot Bitcoin ETFs. Moreover, Kiyosaki’s bullish outlook aligns with his expectation that the Bitcoin price will reach $100,000 by September 2024, underscoring his confidence in Bitcoin’s long-term prospects.
Bitwise CEO Hunter Horsley’s Perspective
Additionally, Hunter Horsley, CEO of Bitcoin ETF issuer Bitwise, offered valuable insight into the financial implications of the 2024 Bitcoin Halving. He highlighted the significant reduction in BTC mining supply and its potential impact on market dynamics. Comparing the upcoming halving with the previous halving in 2020, Horsley focused on the dollar-denominated terms of the supply reduction.
He stated that during the 2020 Halving, Bitcoin was priced at approximately $9,000. This led to a daily decrease in supply of approximately $9 million, resulting in an annual reduction of approximately $3 billion. However, Horsley predicts a more significant impact as the Bitcoin price is likely to hover around $70,000 by the 2024 Halving.
It estimates that the daily reduction in supply will exceed $32 million and the annual reduction will exceed $11 billion. This exponential increase in the dollar value of the supply reduction underscores the increasing importance of the 2024 Halving event.
Horsley’s analysis suggests that the combination of a larger reduction in supply and increased demand for Bitcoin could lead to a more pronounced impact on the market. The significant reduction in natural selling pressure and increased investor interest could contribute to a potential increase in Bitcoin price following the Halving.
Also Read: Satoshi Era Bitcoin Wallet Launches Before Halving, Will BTC Go To $100K?
BTC Price is Close to $70,000
Bitcoin price successfully maintained the $70,000 level. It may also pave the way for a big rally after the Halving event. At the time of writing, the BTC price rose 0.55% to $70,392.78 on Sunday, March 31. On the other hand, the market value of crypto was $1.38 trillion.
On the contrary, the 24-hour trading volume decreased by 25.24% to $17.55 billion. Meanwhile, Michaël van de Poppe, a popular crypto analyst, provided a bullish outlook for Bitcoin price. Poppe pointed out that Bitcoin settled around $70,000 in a week-long sideways movement. He added that this reflects a period of consolidation in the Bitcoin market.
According to his analysis, this stability follows the broader trajectory of Bitcoin’s four-year cycle. Poppe’s predictions also suggest that despite current price levels, Bitcoin may be on its way to surprising many investors in the long run. He predicts that a price of $70,000 per Bitcoin in five years could be considered “cheap,” indicating exponential growth potential.
Also Read: Crypto Price Prediction: Will Bitcoin Rise to New High Before Halving?
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