BitcoinOver the weekend, there was a minor correction in the crypto market, led by Bitcoin, resulting in a decrease in the global market cap to $2.48 trillion. One possible explanation for the correction could be the significant rise in inflation rates in the United States, coupled with the escalating tensions between Iran and Israel on a global scale.
However, there is a possibility of a market rebound, as Bitcoin’s (BTC) halving is approaching. Currently, the value of BTC stands at $66,251.16, reflecting a slight 0.3% increase within the last hour and a 2.5% increase compared to yesterday. The current value of BTC is 8.2% lower than its value a week ago.
Bitcoin halving is around the corner
The current global crypto market cap stands at $2.53 Trillion, with a 3.46% change in the last 24 hours and a significant 90.96% change compared to one year ago. Currently, BTC’s market capitalization stands at $1.3 Trillion, indicating a Bitcoin dominance of 51.48%.
Meanwhile, the market cap of Stablecoins stands at $157 Billion, accounting for a 6.18% share of the overall crypto market cap.
The highly anticipated Bitcoin halving, which has garnered attention from Wall Street analysts who believe it could potentially lead to a doubling in BTC’s value and a $1 trillion increase in market cap over the next year, is set to take place this week.
Just a heads up, the BTC halving is set to take place around April 19, and it might go unnoticed by most people. There won’t be a massive crowd gathering in one place to witness the event, similar to what happened during the total solar eclipse.
Moreover, you won’t find Satoshi Nakamoto, the pseudonymous creator of BTC, making appearances on late-night television. What will happen? You’ll see tons of #Bitcoin discussions taking over your social media feeds, especially on X.
That’s because everything is determined by algorithms rather than real-world factors. Every four years, the BTC algorithm adjusts the mining rewards for BTC miners, cutting them in half. At present, BTC miners are rewarded with 6.25 BTC for each block they contribute to the BTC blockchain. However, starting from April 19, the reward will be reduced to 3.125 BTC.
The history and the facts
Based on the algorithm, the maximum number of BTC coins that will ever be available is 21 million. It’s worth noting that the current circulating supply stands at 19.7 million coins, indicating that a significant 94% of the total Bitcoin supply has already been generated!
This is why several crypto analysts predict the possibility of a significant “supply squeeze” or “supply shock” as individuals scramble to acquire the limited supply of Bitcoin. Similar to other markets, there are already reports indicating that the supply of Bitcoin on crypto exchanges is beginning to diminish.
As a result, this “supply squeeze” has the potential to become highly intense following the halving. With the influx of demand from the spot Bitcoin ETFs, it becomes apparent how the price of Bitcoin could experience a significant surge.
By examining past Bitcoin halving cycles, one can easily deduce the undeniable impact of the scarcity effect. Just like clockwork, Bitcoin has experienced three previous halving cycles. These cycles, occurring in 2012, 2016, and 2020, have consistently resulted in substantial price increases for Bitcoin, propelling it to reach new record highs.
Consider the 2012 halving, for instance. The price of Bitcoin experienced an incredible surge, going from $12 all the way up to $1,161. That’s an astonishing gain of 9,575%! Just look at the incredible surge in Bitcoin’s price after the 2016 halving. It skyrocketed from a mere $600 all the way up to an astonishing $20,000, resulting in an extraordinary gain of 3,233%.
Following the 2020 halving, the value of Bitcoin experienced a remarkable surge, skyrocketing from $9,000 to $69,000, resulting in an impressive gain of 667%.
So we’re not just speaking of a modest 10% increase here. We’re talking significant parabolic movements that are truly unparalleled in the records of financial assets. It’s not surprising that hedge fund managers and crypto analysts are increasingly raising their price predictions for Bitcoin in the 2024 post-halving cycle.
According to experts, there is a growing agreement that the price of Bitcoin could reach $150,000 by the end of 2025. This would represent a significant increase, more than doubling its current value, and result in a substantial increase in market cap, surpassing $1 trillion.
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