Bitcoin Halving 2024: What Will It Bring for the Cryptocurrency Market?

Bitcoin Halving in 2024 – What Does It Mean for the Cryptocurrency Market?

In April 2024, another event is planned that puts every cryptocurrency enthusiast on the edge of their seat – the Bitcoin halving. Although to many it may sound like a complex technical puzzle, in reality, it holds tremendous significance for the entire cryptocurrency market. What does the Bitcoin halving actually mean and what consequences might it bring?

What Is Bitcoin Halving?

Bitcoin halving means reducing the rewards for miners, users who use their computational power to „mine” new units of Bitcoin. In practice, this translates to reducing BTC production by around 450 BTC per day from the current 900 BTC per day. It is a programmed process designed to control the amount of new Bitcoins introduced into circulation, thus combating inflation.

Demand vs. Supply

However, it is worth noting that the supply decrease in this way is minimal compared to the daily fiat money flows on cryptocurrency exchanges and Bitcoin ETF funds. As emphasized by specialists, the supply of Bitcoins is a smaller factor compared to the demand for this cryptocurrency. The demand for Bitcoin is more correlated with global liquidity, such as global money supply, than with the halving itself.

Forecasts and Perspectives

Researchers predict that with the upcoming halving, Bitcoin could reach a price of $77,000 as early as the beginning of April 2024, and even $99,000 by May 2024. Furthermore, there is a possibility that in the coming months, the price of Bitcoin could rise even to $146,000.

The increased demand resulting from expectations of a looser monetary policy and lowered interest rates makes Bitcoin an attractive alternative form of storing value. However, the decrease in ETF Bitcoin flows might signal market saturation and dwindling demand.

Summary

The aim of Bitcoin halving is to maintain a Bitcoin deficit and counter inflation. Historically, after Bitcoin halvings, price increases of this cryptocurrency have been observed. An example of this is a 3000% surge over 17 months following the 2016 halving. For investors and cryptocurrency market observers, the upcoming Bitcoin halving represents a significant moment that could have far-reaching effects on the entire world of cryptocurrencies.