#BTC
Wall Street Journal: Bitcoin halving may push prices up to $240,000
Scott Melker notes in the Wall Street Journal that the price of Bitcoin appreciated 250.86% in the last halving cycle, so we expect the price of Bitcoin to be around $240,000
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Scott Melker pointed out in The Wall Street Journal that in the previous halving cycle, the price of Bitcoin rose from $20000 to $69000, and emphasized climbing up of 250.86%. He said that if a similar trend occurs, “we expect the price of Bitcoin to be around $240000.”
The fourth halving of Bitcoin is imminent, and this time it may receive unprecedented attention due to the impact of BTC spot ETFs. This halving marks a reduction in Bitcoin mining rewards from 6.25 BTC per block to 3.125 BTC per block. These supply reductions occur every 210000 blocks or approximately every four years as part of Bitcoin’s gradual and deflationary approach to reach its final circulating supply limit.
The limited supply of 21 million Bitcoins is a fundamental feature of Bitcoin. The predictability of supply and inflation rates has always been a core factor driving the demand and supply of Bitcoin as a superior form of currency.
Halving the regular supply is the ultimate mechanism to achieve limited supply.
Over time, halving Bitcoin is one of the most fundamental reasons driving the transformation of Bitcoin incentive mechanisms.
As Satoshi Nakamoto stated in Section 6 (Incentives) of the White Paper:
“This incentive measure can also be funded through transaction fees. If the output value of a transaction is less than its input value, the difference is the transaction fee, which will be added to the incentive value of the block containing the transaction. Once a predetermined number of tokens enter circulation, the incentive measure can be fully transformed into a transaction fee and is completely unaffected by inflation.”
From a historical perspective, the halving is related to the significant appreciation of Bitcoin prices, offsetting the impact of the halving of miner subsidies.
