The anticipation of a bull run in the price of Bitcoin in the year 2024 continues to be a driving force behind investment choices throughout the market. There are a lot of reasons that have been cited for the anticipated bull run, some of which include the introduction of Spot Bitcoin ETFs for trading and the imminent halving event for Bitcoin. This latter statement has been supported by one expert, who has elaborated on the reasons why the halving would result in a bull market.
A higher market will be seen as a result of the Bitcoin Halving Event.
X, which was once known as Twitter, was the platform that cryptocurrency expert James van Straten used to explain why the Bitcoin halving event is positive for price. As of right now, the halving is an event that is scheduled to take place around once every four years, and each time it takes place, the block rewards are reduced in half.
This implies that the amount of Bitcoins that miners get for mining a block is instantly reduced by fifty percent, which results in a significant reduction in the amount of new coins that are introduced into circulation. A block reward of 6.25 BTC is now being offered, however it will be reduced to 3.125 BTC during the next halving.
The monthly issuance serves as the case study for Straten's argument that this decrease is significant. He goes on to explain that miners and exchangers had amassed a total of 61,000 Bitcoins over the course of the previous month. The monthly supply, on the other hand, is anticipated to decrease to 13,500 BTC after the halving, and it is this decrease that is considered to be the most important.
It is pointed out by Straten that if the demand were to remain raised at the same levels when the halving takes place, then the demand would be four times higher than the supply. The market will proceed to "find an equilibrium most likely higher" as a result of this change, which will force the market to move. To put it another way, in order to meet the anticipated level of demand, prices would need to climb.
Additionally, the fact that the year of the half coincides with the presidential elections in the United States is another aspect that is optimistic for the price of Bitcoin. In a study, Markus Thielen, Head of Research at Matrixport, pointed out that this synchronicity has always been positive for the price. He said that this situation has been the case.
The analysis draws attention to the fact that the price of Bitcoin ended on a high note in the years before to the halving and election years. The Bitcoin price has increased by 152% in 2012, 121% in 2016, and 302% in 2020, demonstrating a steady pattern over the course of the previous three years of halving.
In light of the fact that 2024 is yet another year that will see a halving of the Bitcoin supply and elections, the research analyst anticipates that the price of Bitcoin will end the year at $70,000. This would indicate that the present price levels have seen yet another surge of 65%, and if the trends continue, it would signal the beginning of yet another bull market.
A rebound in Bitcoin to 70,000 looks conceivable, according to Thielen, since it is supported by the macro environment, monetary tailwinds, the US election cycle, and steadily rising demand from TradeFi investors allocating to Bitcoin ETFs.
