Bitcoin has experienced a rollercoaster ride. Since January 2023, its value has skyrocketed by more than 80%. Despite this, several professionals speculate that this current surge may only be in the initial stages and that BTC has the capacity to exceed its prior peak.
From a low of $16,000 at the end of last year to a high of almost $31,000 on April 14, BTC has significantly increased over the past five months. Despite the fact that the asset may have appeared to be recovering, research indicates that BTC may make even more money in 2024.
How Bitcoin May Achieve Huge Heights in 2024
Although there are a number of key elements supporting the rise of Bitcoin, However, the further decline in the dominance of the US dollar and the crisis in the traditional banking industry are two important causes that might lead to the asset’s tremendous expansion in 2024.
As the US currency loses its position of power and the crisis gets worse, more individuals will look for an alternate store of value, such as BTC. This occurred last month when significant US banks, including Silvergate, Silicon Valley, and Signature Bank, were shut down by the government.
This had a significant influence on BTC value in March as investors looked for other savings options, allowing BTC to boost its price above $25,000 for the first time in a number of months. The fact that there is only a limited supply of BTC is another element that might boost the price increase in 2024.
The quantity of BTC is limited to 21 million, unlike conventional currencies, which central banks may produce as they like. The accessibility of Bitcoin on exchanges will decline as more people buy and retain it, which might result in a rise in demand and higher prices.
This situation is said to be caused by the BTC halving that is scheduled to occur in 2024. The BTC network has a pre-programmed event called the halving that cuts in half the reward that miners earn for verifying transactions every four years. As a result, there are fewer bitcoins produced and traded today.
Will Bitcoin’s Halving Have An Impact On Its 2024 Rally?
In the cryptocurrency community, the BTC halving is a widely anticipated event. Many believe this will serve as a strong enough trigger to lift the commodity over its high price of $69,000 and advance the cryptocurrency sector.
The price of bitcoin has historically been greatly affected by the halving of bitcoin. The three previous halvings in the price of bitcoin in 2012, 2016, and 2020 were followed by massive rallies.
Here, the fundamental economic concept of supply and demand is at work. Since there are fewer new bitcoins available, and assuming that there is a constant or rising demand for the cryptocurrency, the price should grow as a result of this scarcity.
This is due to the fact that once this event occurs in 2024, there will be fewer bitcoins available to purchase, increasing the value of each BTC.
The second bitcoin halving, according to Pantera Capital, will take place on April 20, 2024. Additionally, even though the market typically reaches its high in 1.3 years following a halving, should history repeat itself, the next BTC halving may cause a BTC price increase to $149,000.
It’s essential to remember that the price of Bitcoin will not immediately decrease as a result of the coin’s halving. The full consequences may not be realized in the market for several months or even years.
This is due to the fact that everyone within the Bitcoin network is aware of and has pre-programmed the halving occurrence. As a result, some investors may predict the halving and have already factored it into the market.
Additionally, other elements, including general market mood, geopolitical developments, and modifications to regulations, may have an effect on the price of Bitcoin. In the near term, these elements are frequently greater than the effects of the halving.
Despite the rumors going around the market, bitcoin and the rest of the cryptocurrency market have been rising over the past few weeks. BTC, on the other hand, has had a little pullback over the last 24 hours, raising 0.19%, and is currently trading at $30,430. With a 24-hour trading volume of $22,547,029,730 USD, on the previous day, bitcoin increased by 0.55% with a live market cap of $589,233,600,254 USD. It has a maximum supply of 21,000,000 BTC coins and a circulating supply of 19,346,268 BTC coins.
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