The Bitcoin (BTC) halving in 2024 is expected to have a significant impact on the crypto market. In particular, analysts have provided insights into the impact of Bitcoin price on Bitcoin price trends. Insights from analysts Rekt Capital, Robert Kiyosaki and Bitwise CEO Hunter Horsley provide valuable perspectives on this topic.
How will the halving in 2024 affect the Bitcoin price?
In a recent YouTube video, Rekt Capital's analysis outlines the Bitcoin halving phases and compares the 2024 cycle to those of 2020 and 2016. The downward phase before the halving, which was marked by a decline in the price of Bitcoin, has also been seen in previous cycles observed. Likewise, the halving event is preceded by the pre-halving rally phase, which is characterized by new all-time highs.
In particular, historical trends suggest that the pre-halving rally typically begins around 60 days before the Bitcoin halving, resulting in an increase in the BTC price. However, as observed in the current cycle, a recent decline of around 18% suggests a transition from the pre-halving recovery to the final pre-halving retracement phase.
Historically, this phase is associated with a pullback ranging in depth from around 19% in 2020 to 29% in 2016. The recent pullback, reminiscent of previous cycles, suggests that Bitcoin has absorbed elements from different time periods. Furthermore, Robert Kiyosaki's statement highlights the importance of the halving event as he immediately invests in Bitcoin.
He advocates buying Bitcoin, even in fractions, citing the potential for appreciation after the halving. To do this, he recommends investing in Satoshis or the newly launched spot Bitcoin ETFs. Additionally, Kiyosaki's bullish outlook is consistent with his expectation that Bitcoin price will reach $100,000 by September 2024, underscoring his confidence in Bitcoin's long-term prospects.
Bitwise CEO Hunter Horsley's perspective
Additionally, Hunter Horsley, CEO of Bitcoin ETF issuer Bitwise, offered valuable insights into the financial impact of the 2024 Bitcoin halving. He highlighted the significant decline in BTC mining supply and its potential impact on market dynamics. When comparing the upcoming halving to the previous one in 2020, Horsley focused on the dollar terms of the supply reduction.
He noted that during the halving in 2020, the price of Bitcoin was around $9,000. This resulted in a daily supply reduction of about $9 million, which represents an annual reduction of around $3 billion. However, with Bitcoin price hovering around $70,000 until the halving in 2024, Horsley believes the impact will be even greater.
He estimates that daily supply reductions will exceed $32 million, with annual reductions exceeding $11 billion. This exponential increase in the dollar value of the supply reduction highlights the increased importance of the 2024 halving event.
Horsley's analysis suggests that the combination of a sharper decline in supply and increasing demand for Bitcoin could lead to a stronger impact on the market. The significant decrease in natural selling pressure coupled with increasing investor interest could lead to a possible rise in Bitcoin price post-halving.
Also Read: Satoshi-era Bitcoin wallet comes to life ahead of halving, BTC to $100,000?
BTC price is close to $70,000
Bitcoin price has successfully held the $70,000 mark. Additionally, it could set the stage for a massive post-halving rally. At press time, BTC price increased by 0.55% to $70,392.78 on Sunday, March 31. At the same time, the cryptocurrency had a market capitalization of $1.38 trillion.
On the contrary, the 24-hour trading volume plunged by 25.24% to $17.55 billion. Meanwhile, Michaël van de Poppe, a popular crypto analyst, gave an optimistic outlook for Bitcoin price. Poppe noted that Bitcoin has settled around the $70,000 mark in a week of sideways movement. He added that this reflects a period of consolidation in the Bitcoin market.
According to his analysis, this stabilization follows the broader trajectory of Bitcoin's four-year cycle. Additionally, Poppe's findings also suggest that Bitcoin could be on track to surprise many investors in the long term, despite current price levels. He suggests that the $70,000 price per Bitcoin could be considered “cheap” within five years, suggesting potential for future exponential growth.
Also Read: Crypto Price Prediction: Will Bitcoin Rise to New Highs Before Halving?
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers