Upcoming halving sparks new speculation on BTC price
Upcoming halving sparks new speculation on BTC price
There are less than 100 days left until the halving, one of the most important events not only in the Bitcoin ecosystem but also in the entire crypto community.
Halving is the 2x cutting of the reward to miners for mining Bitcoins through 210,000 added blocks. This event occurs approximately every four years.
The process of reducing the reward to BTC miners has historically led to significant changes in the price of the largest cryptocurrency by capitalization, causing increased interest among investors and the entire crypto community.
After a halving, the influx of new Bitcoins into the market is significantly reduced while the demand for the asset remains the same, creating excitement in the cryptocurrency market and often contributing to the start of a bull rally.
As the halving approaches, the cryptocurrency market is awash with speculation about potential new all-time highs (ATH) in the value of BTC, according to Crypto News Land.
Despite the fact that halving the reward to miners for mining Bitcoins will increase the price of the asset, the crypto community is divided into two camps as to when this will happen. Some crypto enthusiasts believe that the value of BTC will increase in a short period of time, while the other half argues that the price increase will occur with some delay and that Bitcoin will reach its new maximum (ATH) in a year.
The expectation of a new ATH after the halving is based on an analysis of previous cycles of miner reward cuts. The halving in 2012 and 2016 was followed by significant price increases that led to record highs. These patterns have become the main axiom for those predicting new BTC price records in 2024.
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Most BTC price predictions for 2024 range from $60,000 to $125,000. One of the most ambitious predictions was made by investment firm CoinFunds, which stated that the value of Bitcoin would be between $250,000 and $500,000.
Nevertheless, it is crucial for investors, traders, and all market participants to exercise extra caution in these final days before the halving and not act on their spontaneous emotions triggered by the new BTC price predictions. The cryptocurrency market is known for its volatility, and external factors such as regulatory changes, technological advancements, and macroeconomic conditions can cause adjustments in market dynamics.
Related: Long-term crypto investors showed resilience during BTC January 3 collapse
