Bitcoin investors have seen a profitable week as the cryptocurrency surged by 9.34%, reaching above $71,000 according to data from CoinMarketCap. This upward trend has sparked optimism among market participants, who are eagerly awaiting potential large price gains in the current bull cycle.
Bitwise CEO Hunter Horsley has shared insights on the significance of the upcoming Bitcoin halving event, scheduled for April 2024. He believes that this event could be the most crucial in Bitcoin’s trading history due to a substantial decline in the token’s supply. The halving, which occurs every four years, involves reducing the block reward for BTC miners by half.
Horsley referenced the 2020 halving, when Bitcoin was priced at around $9,000. He highlighted that the supply reduction at that time amounted to approximately $9 million per day and $3 billion per year. Given the current price of Bitcoin at $70,000, the Bitwise CEO predicts that the supply reduction in dollar terms will exceed three times that amount, reaching $32 million per day and $11 billion annually.
With Bitcoin’s price on the rise, Horsley anticipates a significant decline in Bitcoin supply, accompanied by a decrease in selling pressure from miners. This trend aligns with the growing institutional demand for Bitcoin as a hedge against inflation and economic uncertainty. Horsley’s observations suggest that Bitcoin is poised for a substantial price surge following the halving event.
Earlier predictions by Hunter Horsley suggested that Bitcoin could reach $250,000 sooner, driven by investor demand fueled by the introduction of the Bitcoin spot ETF. As of the latest data, Bitcoin is trading at $70,000, with a minor loss of 0.65% in the past day. Despite this slight dip, Bitcoin has seen a 10.45% increase on its monthly chart, recovering from a price correction in February.
Bitcoin, often referred to as “digital gold,” currently holds a market cap of $1.1 trillion, making it the largest cryptocurrency globally. The trading volume for BTC has decreased by 23.16%, standing at $24.67 billion. On the hourly chart, BTC is trading at $69,960, according to data from Tradingview.com.
It is essential to note that the information provided in this article is for educational purposes only and does not reflect the views of NewsBTC. Investing in cryptocurrencies carries inherent risks, and individuals are strongly advised to conduct thorough research before making any investment decisions. The use of information from this article is entirely at the reader’s own risk.