As Bitcoin investors bask in the recent 9.34% gain that saw the cryptocurrency trading above $71,000, all eyes are now on the upcoming halving event. Bitwise CEO, Hunter Horsley, has voiced his opinion on the significance of the impending halving, stating that it could be the most crucial event in Bitcoin’s trading history due to a massive decline in the token’s supply.
Unpacking the Numbers: Supply and Demand Dynamics
Looking back at the previous halving event in 2020, where Bitcoin was priced at around $9,000, Horsley pointed out that the supply reduction at that time amounted to approximately $9 million per day and $3 billion per year. Fast forward to the present scenario with Bitcoin trading at $70,000, the expected supply reduction is projected to be more than three times larger in dollar terms, reaching an estimated $32 million per day and $11 billion annually.
With the higher price of Bitcoin, Horsley anticipates that the substantial decrease in the token’s supply will coincide with a diminished natural selling pressure from miners. Furthermore, he highlights the current uptrend in institutional demand, suggesting that all these factors combined could pave the way for a significant price surge post the halving event.
Earlier predictions by the Bitwise CEO hinted at Bitcoin potentially reaching $250,000 sooner, driven by investor demand, especially with the advent of a Bitcoin spot ETF. As of the latest data, Bitcoin is exchanging hands at $70,000, showing a slight 0.65% loss in the last day but enjoying a 10.45% gain on the monthly chart following the correction in February.
Despite the price fluctuations, Bitcoin continues to dominate the cryptocurrency market with a valuation of $1.1 trillion, making it the largest digital asset globally. The trading volume for BTC has seen a decline of 23.16% and currently stands at $24.67 billion. On the hourly chart, Bitcoin is trading at $69,960 according to the BTCUSDT chart on Tradingview.com.
While these insights provide valuable information for investors, it is essential to note that all content shared is for educational purposes only. The opinions expressed do not reflect NewsBTC’s stance on investment decisions. As with any investment, there are risks involved, and individuals are advised to conduct thorough research before committing funds. Utilize the information provided at your own discretion and be mindful of potential risks associated with investing in cryptocurrencies.
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