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2023 turned out to be the year spent rebounding from a dismal bear market caused by the events in 2022. Cryptocurrency is back into bull territory, and there is no better evidence of that than Bitcoin’s rally in 2024. Bitcoin touched its all-time high in March, surging to the $73,750 mark. Analysts believe that this growth will be witnessed through this year due to the Bitcoin halving event scheduled in April 2024.
Bitcoin Price Analysis
Bitcoin prices have quadrupled since January 2023. The rise could be attributed to the hype around the two most awaited events of 2024, the approval of spot Bitcoin ETFs by the U.S SEC and the Bitcoin halving in 2024. Just a month after the news of ETF approval broke, BTC surpassed $50,000, a value not seen by the token since 2021. Prices have now reached a new all-time high and are hovering around $70,000.
Bitcoin Halving and Its Effect on Investment
Bitcoin halving takes place every four years, where the Bitcoin protocol cuts in half the number of coins awarded to successful miners. Since 2020, miners have received 6.25 BTC for solving a problem. When the next halving occurs in 2024, they will only receive 3.125 BTC. With BTC soaring high and halving events close at hand, shall we call it the best time to invest in Bitcoin?
If we consider the last halving event in 2020, the token skyrocketed from around $7,194 to $32,810. Experts are largely bullish in 2024 about the demand for Bitcoin. Martin Leinweber, digital asset product strategist, mentioned that the demand for Bitcoin has already outpaced the available supply. A broader range of investors are dedicating a portion of their assets to Bitcoin! With so much happening, a 50% slowdown in the production of new Bitcoin due to halving will further stroke the demand. There can be an obvious uptrend in prices but investors should not expect a guaranteed moonshot.
“Investing in BTC just before the halving has risks of volatility,” says Dan Weiskopf, co-portfolio manager of Amplify’s Transformational Data Sharing ETF. Weiskopf says that the momentum already generated by the recent bitcoin ETF approvals is likely to keep pushing the prices upward ahead of the halving, but he reminds investors that they should be patient and expect volatility.
Meanwhile, Bitcoin’s Price Today
Data from Coinpedia Markets shows that BTC/USD is currently acting at around $65,151 after falling by 6.5% in a single hourly candle. Bitcoin may be down 7% in April, but a retest of support already has a cathartic effect on overheated markets. As Coinpedia reported, with the latest drop came a major liquidation event, one which, at the time of writing, totalled $400 million for Bitcoin and altcoins combined. Bitcoin halving could be a turning point for the prices, and the token might see its all-time high after that.
