Bitcoin investors have recently experienced a significant increase in profits, with the crypto asset surging by 9.34% to trade above $71,000. This substantial uptick in price has left many individuals in the BTC market eagerly anticipating potential large gains in the current bull cycle. However, according to Bitwise CEO Hunter Horsley, the impending halving event could be the most crucial in Bitcoin’s trading history due to the massive decline in the token’s supply that is expected to occur.
Horsley pointed out that the upcoming Bitcoin Halving event scheduled for April 2024 could have unprecedented supply and demand effects on the cryptocurrency. The Halving event, which takes place every four years, involves reducing the block reward for BTC miners by half. Drawing comparisons to the 2020 Halving, during which Bitcoin was priced at around $9,000, Horsley highlighted the significant reduction in the token’s supply, amounting to approximately $9 million per day and $3 billion per year. With Bitcoin now hovering around $70,000, the expected supply reduction is projected to be more than three times larger in dollar terms, reaching around $32 million per day and $11 billion per year.
With the higher price of Bitcoin, Horsley anticipates that the substantial decline in the token’s supply will coincide with a notable decrease in natural selling pressure by miners. Additionally, the CEO of Bitwise noted that this development aligns with the growing institutional demand for Bitcoin. These combined factors lead Horsley to believe that Bitcoin is poised to experience a significant price surge following the Halving event. In a previous prediction made in February, he suggested that Bitcoin could reach $250,000 sooner than expected due to increased investor demand attributed to the introduction of the Bitcoin spot ETF.
As of the latest data, Bitcoin is trading at $70,000, with a slight 0.65% decline over the past day. Despite this minor setback, the cryptocurrency often referred to as “digital gold” has increased by 10.45% on its monthly chart following a price correction in February. However, it is essential to note that the trading volume of BTC has decreased by 23.16% and is currently valued at $24.67 billion. With a market capitalization of $1.1 trillion, Bitcoin maintains its position as the largest cryptocurrency globally. On the hourly chart, BTC is trading at $69,960, reflecting the recent fluctuations in the market.
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