🌟 Bitcoin 2024: The Impact of Halving and the Future of Cryptocurrency - Part 1 🌟
Bitcoin is currently in a moment of great anticipation due to the halving event scheduled for April 2024, when the reward per block mined will drop from 6.25 to 3.125 BTC. This will be the fourth halving in the history of Bitcoin, an event that has historically had a significant impact on the price of the cryptocurrency. In preparation for this event, some layer 2 (L2) platforms, such as Stacks, are developing smart contracts and decentralized applications (dApps) that utilize the security of Bitcoin, expanding their ecosystem.
Analysts suggest that a reduction in the supply of new bitcoins, assuming constant demand, could theoretically double the value of the asset. Historical data indicates that investing in Bitcoin before a halving event has been a profitable strategy. In previous halving cycles, Bitcoin has shown significant price growth, and there are expectations that the price could reach the $220k mark in 2025. Furthermore, it is anticipated that the reduced block reward could alleviate selling pressure in the market, as the annual buying pressure requirement to maintain current prices will effectively be halved after the halving.
On the other hand, there is also the introduction of Bitcoin ETFs in the US, which absorbed around $1.5 billion in net flows in the first 15 days of trading, potentially balancing the selling pressure coming from the issuance of new bitcoins. The growing adoption of these financial products could, according to some analyses, have an effect similar to an additional halving on selling pressure.
