Menu

Search

  |   Technology

Menu

  |   Technology

Search

Bitcoin Braces for $35 Trillion Market Shift With Upcoming Halving

Bitcoin's upcoming halving could potentially elevate its market cap to an unprecedented $35 trillion.

As Bitcoin approaches its pivotal fourth halving today, experts forecast a dramatic surge in value, potentially reaching a $35 trillion market cap. This significant reduction in Bitcoin mining rewards from 6.25 to 3.125 Bitcoin per block is expected to fundamentally alter the cryptocurrency's economics amidst growing global anticipation and mixed analyst predictions.

Bitcoin Eyes Record Highs Amid Halving Event, Despite Warnings and Wallet Security Concerns

Shiba Inu coin's price rises as market conditions and Shibarium advancements support its revival, Forbes reported.

The bitcoin price has risen by over 330% after collapsing to recent lows of $15,000 per bitcoin in late 2022 and has struggled in recent weeks despite rising anticipation that China will blow up the bitcoin price.

Now, as Binance's bitcoin wallet issues a "credible" iPhone hack warning, one closely watched analyst predicts that the bitcoin halving will catapult the bitcoin price to nearly $1.8 million, giving bitcoin a market capitalization of nearly $35 trillion, despite serious bitcoin halving price warnings from Wall Street.

Bitcoin's fourth halving—a supply cut that would reduce the bitcoin block reward from 6.25 bitcoin to 3.125—is set to occur later today. This could disrupt the bitcoin industry's economics, which has evolved considerably since the last supply cut in 2020.

Bitcoin Halving Set to Reshape Market Dynamics Amidst High Stakes and Historical Predictions

According to the NiceHash countdown, the halving, which will reduce the daily supply of new Bitcoin from about 900 to 450, is only hours away. The 2024 Bitcoin halving is the fourth, followed by 2012, 2016, and 2020.

"If we get a similar run to the previous cycle, looking at historical performances one year after halvings, bitcoin could reach $450,000 a year from now, or $270,000 if this cycle turns out to be more like 2016," Noelle Acheson, bitcoin analyst and author of the Crypto is Macro Now newsletter, wrote, citing Bloomberg data.

However, utilizing Axios data, Acheson discovered that the bitcoin price "could reach $350,000 (using the previous cycle as a guide), or $1.8 million (applying the 2016 cycle performance),"—giving bitcoin a $35 trillion market valuation.

"In the short term, the upcoming halving will put supply and demand slightly out of kilter, driving market pressure as more investors seek to get a piece of the pie," Duncan Ash, head of strategy at Coincover, said in emailed comments.

"This is likely to continue until the elevated price deters new investors, which will restore a closer balance between the number of buyers and sellers and settle the market. In addition, the industry will emerge with more users, a higher market cap, and greater liquidity. As such, we’re likely to see a stabilising effect on the market in the mid to long term,” he added.

This bitcoin halving is the first to occur outside of the Federal Reserve's zirp-era (zero-interest-rate policy), the first following the launch of a fleet of long-awaited Wall Street bitcoin exchange-traded funds (ETFs), and the first since China evicted its bitcoin miners in 2021.

Photo: Microsoft Bing

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.