The digital currency received a significant boost entering this year and despite the tough regulatory crackdowns and Fear, Uncertainty, and Doubt (FUD) that gripped the industry, the price of the cryptocurrency remained resilient.
The most significant event in the history of the Bitcoin (BTC) blockchain – the Halving event – is now slated for April 2024, implying that it is exactly a year away. While the timeline for this event is often known beforehand, the fact that April is here has increased the seriousness of the tracking of the halving event.
Halving is a network event in which the reward scheme being awarded to the miners in the Proof-of-Work (PoW) system that powers the Bitcoin blockchain is reduced by half. At present, the reward is pegged at 6.25 per block, and by the next halving which coincides with Block 740,000, the reward will be slashed to 3.125.
This reduction implies a deflationary tendency in the Bitcoin protocol and it further elongates the timeline that the 21,000,000 total BTC supply will be produced.
Industry Response to Bitcoin Halving
Many experts in the crypto marketplace consider Bitcoin Halving as a very significant event that solidifies the technological narrative being championed by the world’s largest digital currency by market capitalization.
In line with the forthcoming Bitcoin Halving, Mike McGlone, the Bloomberg Intelligence Senior Commodity Strategist has described the year 2024 as a very significant one for the BTC blockchain. According to the market veteran, there is a high certainty that there will be a convincing global recession by next year, and when the time comes, the attractive appeal of Bitcoin will be recognized by institutional investors.
“Importantly, what prevents that trajectory? In the bigger picture of these $10,000 moves being in play, I think well that a significant amount of bitcoin now could make you lose your hair,” McGlone said in a statement. “The bottom line is that astute investors, institutions on the planet feel every day that they need a share of this wealth. I think by the time we get to ’24, at that point, we’re going to be talking about a very serious recession, all politics Republicans, at least, are leaning toward the president, and it’s going to be a great setup next year. I’m really looking forward to it,” added he.
The position he took concerning institutional investors craving to own a piece of the digital currency is also backed by many other market experts in what many described as a ready demand boost for an asset whose production will be reduced significantly.
Bitcoin Price Outlook
With the higher demand and lower supply move that will be ushered in by the next Bitcoin halving, there is a certainty that the price of BTC will be significantly affected.
The digital currency received a significant boost entering this year and despite the tough regulatory crackdowns and Fear, Uncertainty, and Doubt (FUD) that gripped the industry, the price of the cryptocurrency remained resilient.
The digital currency is currently changing hands at $28,434.34, up 2% over the past 24 hours and by 71.74% in the year-to-date period. With Bitcoin halving known to historically aid BTC price growth, expectations remain that this trend will be repeated amid enthusiasm that’s expected to grow.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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