- The upcoming Bitcoin halving event will cut mining rewards in half, making Bitcoin’s total supply more scarce than gold’s for the first time ever.
- Halving events happen every 4 years and historically lead to dramatic price surges for Bitcoin in the following year due to increased scarcity and demand.
- Along with the halving, potential Bitcoin ETF approval could create a “perfect storm” to push Bitcoin’s price to over $100k by end of 2024 according to experts.
Bitcoin has recently seen a surge in price to over $42,000 for the first time in over a year. Many speculate this rise is due to the upcoming halving event which will make Bitcoin’s supply even more scarce. According to CNBC, this scarcity may soon make Bitcoin the first asset in history that is rarer than gold.
Upcoming Bitcoin Halving Event
The Bitcoin halving event occurs approximately every 4 years and cuts the mining rewards in half. This halves the supply of new Bitcoins entering circulationPeople’s Bank of China Includes CBDC in Currency Circulation. The upcoming halving will be Bitcoin’s fourth halving since its creation.
Halving Impacts Bitcoin’s Stock-to-Flow Ratio
The halving of Bitcoin mining rewards affects its stock-to-flow ratio – the amount of current supply versus new supply entering circulation. After the next halving, less Bitcoin will be mined relative to gold, making its total supply more scarce.
Bitcoin Price Reacts Positively to Halvings
Historically, Bitcoin’s price has surged dramatically in the 12-18 months following a halving event. Investors anticipate the increased scarcity driving up demand and price. This anticipated price boost is already being priced in.
Perfect Storm Brewing for Bitcoin
Along with the upcoming halving, the potential approval of a Bitcoin Spot ETF could create a perfect storm to push Bitcoin’s price even higher. Some predict Bitcoin reaching $100k by the end of 2024. The halving’s impact on Bitcoin’s scarcity and perceived value combined with possible ETF approval makes this target seem achievable.
The upcoming Bitcoin halving will make it the first asset in history more scarce than gold. This scarcity, along with possible ETF approval, has set the stage for dramatic gains in Bitcoin’s value according to many crypto experts. The next year promises to be an exciting one for Bitcoin holders.