The 2024 Bitcoin halving is just around the corner, and Bitcoin investors and enthusiasts are eagerly awaiting it. This phenomenon, combined with several recent factors, provides a compelling reason to invest in Bitcoin now. Let’s take a closer look at the Bitcoin halving cycle and why now is the best time to buy Bitcoin.
What is Bitcoin Halving
The Bitcoin halving is a scheduled event that occurs approximately every four years. When Bitcoin halves, the reward for mining new blocks is halved, which means that the Bitcoin reward that transaction validators (also known as miners) receive for validating transactions will be reduced by 50%. After the halving occurs in April 2024, the reward per block will be reduced from 6.25 Bitcoins to 3.125 Bitcoins.
The principle behind halving is to reduce the rate at which new Bitcoins are generated, a rule set by Bitcoin's creator Satoshi Nakamoto to increase scarcity and control inflation. This scarcity is one of the fundamental reasons why Bitcoin is often compared to digital gold.
Why is it recommended to invest in Bitcoin now?
Predicting a price surge
Taking into account market dynamics and supply factors, JPMorgan analysts expect that the price of Bitcoin may fall to $42,000 after the halving occurs. In contrast, considering the reduction in supply rate and the increase in institutional interest, Standard Chartered Bank is more optimistic about the prospects of Bitcoin, predicting that the price of Bitcoin will reach $150,000 by the end of 2024 and $250,000 by the end of 2025. It is predicted that the price of Bitcoin may reach $95,000 after the halving.
Meanwhile, Pantera Capital has predicted that the price of Bitcoin could soar to $35,448 before the halving in April 2024. After the halving, Bitcoin could soar all the way to a record high of $149,000.
