The most direct way the Bitcoin halving impacts price comes down to simple supply and demand. If there are fewer Bitcoins being made available, the price ought to rise, assuming demand remains constant or increases.
When Bitcoin halves, the reward given to the contributors securing the network is reduced by 50%, directly impacting the rate at which new Bitcoins are introduced into circulation. And because there are only 21 million bitcoins and the halving makes fewer of them, the halving contributes to making bitcoins more scarce.
The primary purpose of halving is to control Bitcoin's supply, ensuring it remains finite with a maximum cap of 21 million coins. Halving affects Bitcoin by potentially increasing its value over time due to the reduced supply of new coins entering the market, aligning with the principles of supply and demand.
Despite short-term uncertainties, Bitcoin has recorded a new all-time high price in each 4-year period between halving, indicating positive long-term performance. The next Bitcoin halving is expected in mid-April 2024, with a current prediction of Bitcoin trading at $62,013 as of April 12, 2024.
Historically, the supply shock generated by the halving has marked the start of significant bull markets for bitcoin. And as we approach the fourth halving, I believe that this trend will continue, potentially taking bitcoin's price to a new all-time high.
Recent report predicts that Bitcoin will reach a new all-time high in 2024. Bitcoin (BTC) is expected to reach a new record of $150,000.
Bitcoin current price sits at around $615,00
The bitcoin halving – also known as the halvening – in simple terms will make obtaining or mining new bitcoin much harder.
