As the countdown to Bitcoin’s next halving continues, investors eagerly anticipate the possibility of another significant bull market. Mitchell Askew, Head Analyst for Blockware Solutions, brings a fresh perspective to the table, challenging the conventional belief that Bitcoin and the halving are subject to diminishing returns. In fact, Askew predicts not only more gains in the near future but also asserts that the halving’s impact will retain its exponential strength in future cycles.
Traditionally, the cryptocurrency market operates within four-year cycles, and the halving is believed to be the driving force behind bull markets by tightening the supply of newly issued BTC. However, there are concerns that the impact of these halvings will diminish over time. Bernstein, for instance, recently predicted that BTC will peak at $150,000 in 2025, based on the “law of large numbers.” Nevertheless, Askew challenges this line of thinking, arguing that it fails to account for the decreasing supply over time as long-term hodlers accumulate BTC.
On-chain data provided by Glassnode supports Askew’s argument, revealing that Bitcoin’s “available supply” (coins moved within the past 155 days) is currently at historic lows. This observation highlights the impact of hodling on Bitcoin’s market dynamics. With more individuals adopting a long-term approach to holding Bitcoin, the supply available for trading decreases over time. Consequently, the scarcity factor comes into play, potentially driving up the price and creating an environment for a new and significant bull market.
The Role of Adoption and Unprecedented Demand
Another crucial aspect to consider is the level of adoption. Despite its growing popularity, Bitcoin remains relatively unknown to the average person. As greater numbers of individuals become exposed to and interested in BTC, it has the potential to create an unprecedented wave of new network entrants. This influx of demand could disrupt previous price patterns and pave the way for a substantial bull market. Ultimately, Askew believes that the total addressable market for Bitcoin is “every ounce of wealth/savings in the world,” emphasizing the limitless possibilities for future demand.
Recently, Bitcoin experienced a surge in price, reaching $44,500, only to pull back to $41,130 following a mass liquidation event on Sunday. While short-term fluctuations are expected in any market, it is essential not to dismiss the potential for a new bull market merely based on these temporary setbacks. The real test lies in whether Bitcoin can sustain its upward trajectory in the long run.
As Bitcoin’s next halving approaches, it is crucial to remain optimistic about the potential for a new bull market. Mitchell Askew’s perspective challenges traditional beliefs, providing a fresh and hopeful outlook. If his predictions hold true, the exponential impact of the halving may continue to propel Bitcoin’s market in future cycles. As adoption increases and hodler accumulation reduces the available supply, the stage is set for an unfathomable demand that could drive Bitcoin’s price to new heights. So, while the road to a new bull market may have its hurdles, the future remains bright for the world’s leading cryptocurrency.