What will the Bitcoin Halving be like in 2024?
The Bitcoin halving is approaching, and experts are predicting unique dynamics for the upcoming halving. With only 8 days left until the event, let’s take a look at some of the reasons that make this halving different from the previous ones and why it is so significant.
Bitcoin Halving: Why it will be different than before
Bitcoin’s fourth halving, which will take place on April 20, promises some notable differences from its predecessors. Historically, the Bitcoin price often reached its record high months after the Bitcoin halving. But this time Bitcoin broke the record 1.5 months ago. Antoni Trenchev, co-founder of cryptocurrency exchange Nexo, emphasizes the uniqueness of this circumstance: “What makes this halving unique is that Bitcoin has already surpassed the highest level of the last cycle. This has never happened before and makes it much more difficult to predict the length and severity of the cycle.”
Another key difference is the increased interest of institutional investors in the Bitcoin market. Major Wall Street institutions such as BlackRock, Fidelity, JPMorgan and Goldman Sachs have begun adding Bitcoin to their portfolios and services. The upcoming halving is also being actively promoted by some of these institutions.
Important factor: BTC ETF
The introduction of exchange-traded funds (ETFs) is another key factor that differentiates this halving from the previous ones. Since launching on January 11, Bitcoin ETFs have seen net inflows of $12.6 billion. This number even exceeds the amount of Bitcoin produced in the same period. The fact that major brokerages have not yet completed their ETF review processes could further exacerbate the impact of the Bitcoin halving.
Asher Genoot, CEO of mining company Hut8, recently revealed that major banks have contacted the company to purchase Bitcoin from the looming supply shortage. Given that daily production has been halved, the situation on the stock exchanges could worsen even further.
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According to Coinbase, the current price development only indicates the beginning of a longer bull market. Investors may want to keep an eye on long-term trends and not react solely to short-term price fluctuations. The real opportunity may lie beyond this short-term volatility. The Bitcoin halving therefore not only remains a cyclical event, but this time promises a series of unique developments that could have a lasting impact on the cryptocurrency landscape.
