Crypto investors largely have high hopes for BTC in the wake of the quadrennial halving
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As cryptocurrencies prove to be investors’ saviors as stock prices continue to fall this quarter, investors are keeping a close eye on it Bitcoin (BTC USD) ahead of its highly anticipated halving, which occurs today, April 19th.
So what exactly is it and more importantly, will Bitcoin rise after the April 2024 halving?
Well, the halving refers to the reduction of the block subsidy for Bitcion miners from 6.25 BTC to 2,125 BTC, effectively reducing the reward miners receive from mining the flagship crypto.
While this may seem strange and mysterious, it is actually an inherent and somewhat regular aspect of BTC that tends to drive prices higher, rather than the other way around. In fact, Bitcoin halvings occur every four years, and this event typically increases the price of the cryptocurrency.
Simply put, the drop in hash rate pushes some miners away from the task, causing supply to shrink and prices to rise.
What is noteworthy is that the post-halving surge may not occur immediately after the event. In fact, it could take up to a year and a half for the effects of the halving to really be felt.
“The price reaction is usually not immediate,” said Rikke Staer, CEO of payment solutions platform Coinify. “There is strong growth after the halving [after] six and 18 months, and larger price movements become statistically less likely as the market size increases.”
The last halving resulted in a five-fold increase in Bitcion price, following the previous pattern. Is that what you should expect this time?
Will Bitcoin Rise After Halving? Here are 3 expert predictions
Experts have slightly different theories about the end result of the halving, but most agree on one thing: BTC prices are rising.
Plan B, the creator of the Stock to flow (S2F) model assumes that this Bitcoin halving will follow the historical trend of rising prices.
“[In my opinion] this Bitcoin halving will NOT be any different,” the pseudonymous analyst wrote in a post on X earlier this week. “All Bitcoin price increases will roughly halve again. Purchase 6 [months] before the halving and sale 18 [months] after the halving (green line) Buy will outperform [and] hold. BTC [greater than] $100,000 in 2024. BTC Great [greater than] $300,000 in 2025.”
Founder of SkyBridge Capital Anthony Scaramucci also has high expectations for BTC after the halving. In fact, in an interview on CNBC Squawk BoxScaramucci shared that he believes BTC can rise by more than 200% in the next year and potentially reach $200,000 per coin.
Scaramucci notes that he believes there could be a short-term drop of up to 15% before BTC finds its first post-halving move.
One of them is the investment banking giant JPMorgan few naysayers the halving. JPM analysts expect BTC to fall as low as $42,000 per coin following the event as they “expect Bitcoin prices to trend in that direction once the euphoria caused by the Bitcoin halving subsides after April “. They also believe that the Bitcoin halving could be priced into the current BTC price of $64,223 per coin.
At the time of publication, Shrey Dua did not hold, directly or indirectly, any positions in any of the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.