Get Ready for Bitcoin Halving 2024: Here’s What You Can Anticipate
Bitcoin Price Surges as Spot Bitcoin ETFs and Halving Event Drive Demand
The price of Bitcoin is soaring as spot Bitcoin ETFs gain popularity and the highly anticipated halving event approaches. Experts believe that the halving could reduce Bitcoin’s inflation rate and potentially push its price to new record highs.
Recent data from CryptoQuant, a leading on-chain analytics firm, reveals that a staggering 75% of new Bitcoin investments are flowing through spot Bitcoin ETFs. This highlights the growing interest in the digital asset and its increasing demand.
As Bitcoin continues its impressive climb, market analysts are turning their attention to the upcoming April 2024 halving event. Many believe that the price of Bitcoin could reach its all-time high of $69,000, which was last seen in November 2021.
Looking back at the 2020 halving event, there was initially some concern as the block reward was reduced to 6.25 BTC and Bitcoin’s hash rate dropped by 30% within two weeks. However, the system quickly adapted and set new records with a new all-time high hash rate just seven weeks later. Following the halving, Bitcoin’s price soared and reached a new peak within eight months.
Moving forward to the present, the upcoming halving event promises transformative changes for Bitcoin. The miner rewards per block will be halved from 6.25 BTC to 3.125 BTC, resulting in a reduction of Bitcoin’s inflation rate from 1.7% to 0.85% per year. While there may be a temporary dip in Bitcoin’s hash rate after the halving, historical trends suggest that miners tend to sell less, thereby reducing their impact on the market.
In addition to the halving anticipation, other factors such as potential FED rate cuts and increased interest from major institutions in Bitcoin contribute to the projected 85% chance of the cryptocurrency revisiting its all-time highs within the next six months.
In terms of Bitcoin’s price analysis, the cryptocurrency is currently encountering resistance around $52,000. However, the prevailing bullish momentum is evident through the upward-sloping 20-day exponential moving average ($46,947). The relative strength index (RSI) is also hovering above 81, indicating a rapid rally in the near future. If Bitcoin maintains its position above $52,000, a rally to $60,000 is expected.
The question remains: Will Bitcoin reach another all-time high, or will the post-halving reality have a different impact? We want to hear your thoughts!