According to U.Today, the countdown to Bitcoin's (BTC) much-anticipated halving event has started, with renowned crypto analyst Willy Woo making a significant prediction. Woo suggests that the halving could have a substantial impact on Bitcoin's price, potentially causing it to surge dramatically. Bitcoin halving, a preprogrammed event that happens roughly every four years or after every 210,000 blocks are mined, results in the reward miners receive for verifying transactions and adding them to the blockchain being halved. This decrease in mining rewards is intended to control inflation and ensure that the total supply of BTC remains capped at 21 million coins.
Woo's analysis indicates that the forthcoming halving will result in a significant decrease in Bitcoin's annual supply growth. At present, the annual supply growth rate is 1.7%. However, post-halving, this rate will be reduced to just 0.85%. To provide context, Woo noted that the annual supply growth rate of gold is 1.6%, implying that BTC will soon have a lower supply growth rate than gold. He also compared Bitcoin's supply growth rate to that of the U.S. dollar (USD), which is currently experiencing a negative growth rate of -1.7% due to inflation. He stated that the typical range for annual supply growth in fiat currencies is between 5% and 10%. When the USD supply growth reverts to this normal range, Woo predicts that Bitcoin's price will surge dramatically.
The halving event is generally seen as a positive indicator for BTC, as it slows the rate at which new coins are introduced into circulation. This scarcity is often linked with increased demand and upward pressure on prices. Woo's prediction of Bitcoin surging following the halving reflects the growing optimism among investors about the coin's future price trajectory. While Woo's prediction is certainly optimistic, other analysts and experts in the field have also expressed bullish sentiment about Bitcoin's prospects post-halving. Many believe that the reduced supply growth, coupled with increasing adoption and institutional interest, could propel Bitcoin to new all-time highs in the coming months.