3 factors will cause Bitcoin price to skyrocket after Bitcoin Halving 2024
KEY TAKEAWAYS:
The next Bitcoin Halving event will take place in April 2024, marking an important milestone to help control BTC supply, maintain scarcity and boost the value of this currency over time.
History shows that BTC prices tend to increase sharply after each Halving. Even if there is an adjustment later, the following price will always be higher than the price before this event occurred.
Although it is impossible to confirm with certainty, there are still many positive factors converging, promising upside potential for BTC after Halving 2024 such as the Bitcoin ETF, Bitcoin Ordinals’ contribution to miner profits and the increase in mining activity. move on the string.
The cryptocurrency market is boiling ahead of Bitcoin Halving 2024, promising a strong boost for BTC prices. History has proven that Halving often leads to explosive price increases, and this time is no exception. In this article, Anthony will reveal 3 key factors that can push Bitcoin prices up after the Halving event!
1. What is Bitcoin Halving?
Bitcoin Halving is an event that reduces the block reward given to Bitcoin miners by half . Halving occurs every 210,000 blocks mined, which, based on current mining difficulty, will occur approximately every 4 years.
Purpose of Halving:
- Reduces the rate at which Bitcoin is issued, helping to control the supply and maintain the scarcity of Bitcoin.
- Encourage miners to continue mining Bitcoin and ensure the value of Bitcoin will increase over time.
The next Bitcoin Halving is expected to take place in April 2024.
2. BTC price history in previous Bitcoin Halving periods
Unlike their predecessors, which primarily use futures contracts to gain exposure to Bitcoin’s price movements, spot Bitcoin ETFs take a direct approach by holding Bitcoin. How these ETFs interact with home investors’ cash flows is extremely important.
3. Will BTC price definitely increase after Bitcoin Halving?
The question of whether BTC price will definitely increase after the Halving event is always a hot topic and attracts much debate in the cryptocurrency community. However, to answer this question is really not simple.
Through the history of previous Bitcoin Halving periods, it can be seen that BTC prices tend to increase, and continue to increase over time. But there is no guarantee that this will happen at the halving in 2024. However, in this important year, there are at least three factors that can help Bitcoin increase in price after the halving and beyond: : Bitcoin ETF, miner profits and increase in on-chain activity.
4. 03 possible reasons why BTC price will skyrocket after Bitcoin Halving 2024
4.1. Huge capital flow from institutions into Bitcoin ETF
Previous Halvings have often preceded or coincided with major external economic events. The 2012 halving coincided with the intense public debt crisis in Europe. Or the explosion of the Initial Coin Offering (ICO) model pushed BTC prices up in 2016. And most recently, COVID-19 caused BTC prices to increase before the 2020 Halving event because people were concerned about inflation from print money.
2024 is also an important year when just at the beginning of the year, the SEC officially approved 11 Bitcoin ETF Spot funds to operate. To date, the total net asset value of all spot Bitcoin ETFs has reached more than $54 billion, with total net worth inflows hitting $9.37 billion.
Bitcoin ETF opens the door for more traditional investors and institutional investors to participate in the cryptocurrency market more safely and easily. With more and more new Spot Bitcoin ETFs being listed on the exchange, along with a huge amount of capital from funds flowing into the crypto market, BTC prices are predicted to have a strong upward momentum this year.
4.2. Bitcoin Ordinals helps Miners increase profits
The April halving will reduce the amount of BTC miners can mine per block. This helps preserve the value of BTC but also means miners’ mining profits will be reduced. As a result, miners are looking for ways to maintain, including selling off BTC reserves and competing on-chain transaction fees.
In 2023, the phenomenon of Bitcoin Ordinals — an initiative to embed digital files into Bitcoin units called Satoshis, helped miners cope with the increasing difficulty of the Bitcoin network. Since launch, Ordinals transactions account for more than 20% of miners’ revenue.
4.3. An increase in on-chain activity
Ordinals has also contributed to an increase in on-chain activity as developers begin to explore projects. On-chain analysis revealed that the number of addresses with strong activity increased to 891,692 as of February 11, 2024. Experts predict, the recent expansion of the ecosystem, along with the activity of developers Future developments will increase the price of BTC and strengthen the market position for this asset.
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