The digital currency received a significant boost earlier this year and despite severe regulatory crackdowns and fear, uncertainty and doubt (FUD) gripping the industry, the price of cryptocurrency remained resilient.
The most significant event in the history of the Bitcoin (BTC) blockchain – the Halving event – is now foreseen for April 2024, which implies that there is exactly one year left. Although the timing of this event is often known in advance, the fact that April is here has increased the seriousness of the follow-up to the halving event.
The Halving is a network event in which the reward system given to miners in the Proof-of-Work (PoW) system that powers the Bitcoin blockchain is halved. Currently, the reward is set at 6.25 per block, and at the next halving that coincides with the 740,000 block, the reward will be reduced to 3.125.
This reduction implies a deflationary trend in the Bitcoin protocol and further lengthens the production time of the total supply of 21,000,000 BTC.
Industry Response to the Bitcoin Halving
Many crypto market experts view the Bitcoin Halving as a very significant event that reinforces the technology narrative championed by the world’s largest digital currency by market capitalization.
In line with the upcoming Bitcoin Halving, Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, has described 2024 as a very important year for the BTC blockchain. According for the market veteran, there is high certainty that there will be a compelling global recession by next year, and when the time comes Bitcoin’s attractive appeal will be recognized by institutional investors.
“Above all, what prevents this trajectory? In the big picture of these $10,000 moves in play, I do think a significant amount of bitcoin could now knock your hair out,” McGlone said in a statement. “The main thing is that savvy investors, institutions around the world feel every day that they need a share of this wealth. I think by the time we get to 24, at which point we’re going to be talking about a really bad recession, all of the political Republicans, at least, are leaning towards the president, and that’s going to be a great setup next year. I’m really looking forward to it,” he added.
The position he took regarding institutional investors wanting to own a share of the digital currency is also supported by many other market experts in what many have described as an immediate surge in demand for an asset whose production will be considerably reduced.
Bitcoin Price Outlook
With the higher demand and lower supply that will be introduced by the upcoming Bitcoin halving, it is certain that the price of BTC will be significantly affected.
The digital currency received a significant boost earlier this year and despite the harsh regulatory crackdowns and the fear, uncertainty, and doubt (FUD) that gripped the industry, the price of cryptocurrency remained resilient.
Digital currency is currently changing hands at $28,434.34, up 2% in the past 24 hours and 71.74% since the start of the year. With the Bitcoin halving known to have historically contributed to BTC price growth, this trend is still expected to repeat itself with excitement expected to grow.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real-world applications of blockchain technology and innovations to drive mainstream acceptance and global uptake of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based media and sites. Benjamin Godfrey is a sports and agriculture enthusiast.
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