Bittime - What is the price prediction after the Bitcoin Halving in 2024? Do you feel very enthusiastic about Bitcoin Halving? If yes, then you are reading the right article.
Actually, you are not the only one who feels high enthusiasm for Bitcoin Halving , because according to information from Bittime, it was revealed that search interest on Google for Bitcoin Halving is increasing significantly.
Bitcoin Halving Countdown 2024
However, considering the various geopolitical conditions that are currently occurring, this year two versions have emerged that are confusing regarding price predictions after the Bitcoin Halving.
One side expressed optimism over the Bitcoin Halving which would bring massive bullishness . And the other side is pessimistic about the boosting power of Bitcoin Halving this year.
Understanding Bitcoin Halving
Bitcoin Halving is an event where the reward given to Bitcoin miners for mining new blocks in the Bitcoin network is cut in half.
In the context of Bitcoin, every 210,000 new blocks (about every four years), the amount of Bitcoin given to miners as a reward for mining new blocks is reduced to half of what it was before.
This process occurs automatically based on the rules of the Bitcoin protocol.
In the beginning, when Bitcoin was launched in 2009, the reward for mining a new block was 50 Bitcoins per block.
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After about four years, in 2012, the first Bitcoin Halving occurred, where the reward dropped to 25 Bitcoins per block.
Then, in 2016, the second halving occurred, and rewards were reduced again to 12.5 Bitcoins per block. The same thing happened in 2020, where rewards dropped to 6.25 Bitcoins per block.
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Purpose and Impact of Bitcoin Halving
The main goal of the Bitcoin Halving is to regulate the rate of creation of new Bitcoins and control inflation .
By reducing the rewards given to miners every few years, Bitcoin has an increasingly limited supply over time.
This is designed to maintain the relative value of Bitcoin by preventing excessive inflation.
Another impact of the Bitcoin Halving is its potential impact on the price of Bitcoin. Some analysts and market observers believe that a decrease in the number of new rewards entering the market (due to the halving) could drive Bitcoin's price up.
This is due to a combination of increasingly limited Bitcoin supply and increasing interest from Bitcoin investors and users.
Price Prediction After Bitcoin Halving
Source: Bittime
Based on observations via the Bittime Trade page, ahead of the Bitcoin Halving, there is a positive trend looming.
However, this is not a guarantee that Bitcoin prices will rise after the halving.
Halvings are created to make Bitcoin increasingly scarce, which in turn is expected to drive Bitcoin prices higher.
And for the last three rounds, that's exactly what happened. After Bitcoin's first halving in November 2012, the price of Bitcoin rose from $12.35 to $127 five months later.
After the second halving in 2016, Bitcoin's price doubled to $1,280 within eight months.
Between the third halving in May 2020 and March 2021, the price of Bitcoin increased from $8,700 to $60,000.
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However, this correlation does not indicate a definite cause and effect relationship, especially with a limited sample.
First, there is the possibility that the increase may just be a coincidence. There is also the possibility that the increase in Bitcoin prices is not entirely related to the halving mechanism itself, but rather has more to do with the developing narrative regarding the halving.
With each halving, expectations about Bitcoin's potential increase in value increase, which in turn encourages more people to buy.
This increase in demand then causes prices to rise, ultimately fueling further interest in the strengthening cycle.
Reduces the potential for large price changes to occur on halving days. Most of the economic effects of the halving may have occurred because investors had purchased Bitcoin before the event occurred.
The effects of the halving will continue for months or years, experts say.
Also Read: Investors Must Be Prepared! Bitcoin Predicted to Soar High Post Halving
Optimistic Version of Price Prediction After Bitcoin Halving
Currently, there are between 19 million and 20 million Bitcoins in circulation, with only 21 million tokens ever programmed.
The halving was planned to keep Bitcoin's supply limited and maintain its function as a decentralized store of currency value.
By reducing supply, some predict that the halving in 2024 will increase demand for Bitcoin, as well as the price of Bitcoin itself, as happened after the three previous halvings.
Bitcoin experienced a price increase of 8,069% in the 12 months after the 2012 halving, 284% after the 2016 halving, and 559% after the 2020 halving.
Tom Essaye, an analyst from Sevens Report, said that this is in line with the principles of Basic Economics 101, where Bitcoin prices tend to rise after the halving.
According to him, as long as demand remains high and new supply decreases, the only variable that can change is price.
Also Read How to Buy Crypto:
Pessimistic Version of Price Prediction After Bitcoin Halving
According to a research report from JPMorgan, the price of Bitcoin (BTC) is likely to experience a decline after the halving, a four-year event that slows the growth of Bitcoin supply and is expected to occur around April 19-20.
JPMorgan assesses that the market is still overbought , based on an analysis of open interest in Bitcoin futures contracts.
Additionally, although the price of the crypto asset Bitcoin is currently around $61,200, which is a higher level compared to the bank's volatility-adjusted value of gold, which puts it at $45,000, the projected production cost after the halving is around $42,000.
Bitcoin production costs have historically served as a floor for BTC prices.
Beyond the estimates of economists such as JPMorgan above, geopolitical factors such as tensions in the Middle East between Iran and Israel are also one of the aspects that give rise to pessimism about Bitcoin prices after the halving.
How to Buy Bitcoin (BTC) on Bittime
You can buy and sell Bitcoin (BTC) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Bitcoin (BTC) is available on Bittime with the market pair BTC/IDR . To be able to buy BTC IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Bitcoin (BTC) on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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