As we head towards the middle of 2024, investors are eagerly anticipating Bitcoin halving 2024, a blockbuster for crypto trading.
The upcoming Bitcoin halving 2024, coupled with recent inflows into exchange-traded funds (ETFs) and a surge in on-chain activity, has many predicting a significant price increase for Bitcoin and other cryptocurrencies.
Bitcoin halving 2024: What is it and when will it happen?
First, let’s take a closer look at the Bitcoin halving event. This event happens every four years and reduces the number of new coins issued to miners by half. This reduction in supply can lead to an increase in demand and, therefore, a rise in the price of Bitcoin. Historically, the price of Bitcoin has risen after each halving event, in some cases by a factor of six.
The next halving is expected to occur in April 2024, when the reward for each Bitcoin miner will be reduced from 6.25 BTC to 3.125 BTC. This reduction in supply will further limit the amount of new coins entering the market, making each coin more valuable.
In addition to the halving event, investors are also excited about recent inflows into US BTC ETFs, which have soared to $9 billion since January. This influx of institutional investment has led to the accumulation of around 19,200 BTC, further boosting demand for the cryptocurrency.
On the other hand, on-chain activity has significantly increased thanks to the Bitcoin Ordinals phenomenon. This led to a strong increase in activity addresses, which now total 891,692. As a result, the Bitcoin network is becoming more robust, and more participants are entering the market.
Cryptocurrency exchanges are also expecting a surge in demand following the approval of Ethereum ETFs. The US Securities and Exchange Commission recently gave the green light to 11 spot ETFs with over $10 billion in assets under management. This approval led to a 12% increase in the value of BTC, and the market expects similar approvals for Ethereum and other currencies.
Despite the excitement surrounding the upcoming halving event, some experts believe that the impact on demand is yet to be seen. Zakhil Suresh, CEO of crypto trading platform BitSave, noted that during the ETF approval day, the average weekly volume on Indian exchanges was around $12 million but has since dropped to less than $6 million. This suggests that interest in Bitcoin may have waned following the ETF approval but could potentially rebound as the halving event approaches.
As a result, 2024 is shaping up to be a landmark year for crypto trading. With the upcoming Bitcoin halving 2024, increased institutional investments, and growing on-chain activity, many experts are predicting a significant price increase for Bitcoin and other cryptocurrencies. Time will tell if this surge will live up to investors’ high expectations, but one thing is certain: 2024 will be an exciting year for the crypto market.
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