Members of the cryptocurrency community are showing a positive attitude towards the upcoming Bitcoin halving. They see this event as a potential catalyst for price increases. In less than 100 days, the halving will reduce miner rewards by 50%.
Members of the cryptocurrency community are showing a positive attitude toward the upcoming Bitcoin halving, which they see as a potential catalyst for price growth. In less than 100 days, the halving will reduce miner rewards by 50%.
CryptoRank.io, a leading research and analysis platform, revealed that the majority of platform users are positive about the Bitcoin halving.
About the Increase in the Value of Bitcoin
A survey conducted on the website found that 79% of users expressed optimism about Bitcoin mining, while 21% expressed concern. The long-awaited Bitcoin halving is a major event that reduces miners’ remuneration. In less than 100 days, the halving will reduce the block mining reward from 6.25 BTC to 3.125 BTC.
Historically, halvings were accompanied by bullish increases in the price of Bitcoin. Since the last halving in 2020, the price of Bitcoin has increased by 401.1%, according to data from CryptoRank.io. There are widespread expectations that the next halving will result in a similar price increase.
Bearish Sentiment After Launch of Bitcoin Spot ETF
Despite the optimism, the bearish view on Bitcoin’s halving reflects the pessimistic sentiment that emerged following the launch of Bitcoin spot ETFs last week.
Contrary to the positive expectations of many market participants, the price of Bitcoin has started to decline since the United States Securities and Exchange Commission (SEC) approved 11 ETFs.
More recently, the price of Bitcoin is down 9.20% in the last seven days, according to data from CoinMarketCap. These drops came after the flagship cryptocurrency hit a high of $48,000 following ETF approval. Bitcoin (BTC) is currently trading at $42,587.
Bitcoin Becomes Scarcer Than Gold After Halving
The crypto community waits with anticipation for the next Bitcoin halving, which will take place approximately between April 2 and 23, 2024. The approval of BTC spot ETFs and the US presidential elections are two issues that are added to the halving, filling of optimism to investors.
The majority consensus draws an optimistic scenario, with Bitcoin reaching new all-time highs (ATH) and a speculative bullish rally that could give way to a utility market. In this context, some altcoins with regulatory clarity and obvious use cases could take off. The obvious question is whether the 2024 Bitcoin halving will have the expected effect on the price of BTC and not only the Nakamoto currency, but the crypto market in general.
CNBC’s Fast Money trader and cryptocurrency investor Brian Kelly argued that after the upcoming Bitcoin halving in spring 2024, the supply of the original cryptocurrency asset will be more limited, making it scarcer than gold for the first time in history.
Historical trends show that Bitcoin’s best performance occurs between 12 and 16 months after the halving. However, this time may be different, given the higher price of Bitcoin and the limited daily supply of around 900 BTC. However, this would make Bitcoin scarcer than gold in terms of share flow, a key metric.
The obvious question is whether the 2024 Bitcoin halving will have the expected effect on the price of BTC and not only the Nakamoto currency, but the crypto market in general. In this sense, mass adoption and the strong influx of institutional money are some of the variables to take into account.
By Leonardo Perez
