Over the past week, Bitcoin (BTC) investors enjoyed big gains as the crypto asset gained 9.34% to trade above $71,000. based on data from CoinMarketCap. Currently, most of the BTC market is very expectant about the potential big price gains that the current bull cycle could deliver.
However, commenting on the near future, Bitwise CEO Hunter Horsley has stated that the upcoming halving – a key part of the bull cycle – could be the most important in Bitcoin’s trading history due to an impending massive drop in the supply of tokens.
Bitcoin Price Will Affect Supply Reduction and Demand for Tokens – CEO of Bitwise
In a post on X on March 29, Hunter Horsley shared that the Bitcoin Halving event scheduled for April 2024 could have the most profound supply and demand effects ever recorded in the asset’s history. For context, Bitcoin halving is a phenomenon that occurs every four years where the block reward for BTC miners is reduced by half.
Bitcoin’s halving in April 2024 may be the most impactful we’ve ever seen. Why?
At the last Bitcoin halving, 2020, Bitcoin was at ~$9,000. So the decline in dollar supply was ~$9 million per day and ~$3 billion per year.
This halving with Bitcoin ~$70,000 will be >3x larger in terms of $: ~$32M per…
— Hunter Horsley (@HHorsley) March 29, 2024
Horsley started his prediction by referring to the last halving in 2020, in which the price of BTC was ~$9,000. The CEO of Bitwise stated that Bitcoin has experienced a significant drop in token supply due to the halving effect, amounting to ~$9 million per day and ~$3 billion per year.
Given that Bitcoin’s price is currently hovering around $70,000, Horsley believes that the expected reduction in dollar supply is likely to be at least three times as large. $32 million a day and $11 billion.
With a higher Bitcoin price, Horsley predicts that the expected massive drop in Bitcoin supply will be accompanied by a greater reduction in natural selling pressure from miners. Furthermore, Bitwise’s CEO notes that this development will align with the current increase in institutional demand.
Overall, all the factors highlighted by Hunter Horsley indicate that Bitcoin is likely to experience a magnanimous price increase after the Halving. Earlier in February, Bitwise’s boss predicted that BTC could reach $250,000 sooner due to investor demand, driven by the introduction of the Bitcoin spot ETF.
BTC price overview
At the time of writing, BTC is exchanging hands at $70,000 with a loss of 0.65% on the last day. The widely praised ‘digital gold’ is now up 10.45% on the monthly chart, following the price correction in February.
Meanwhile, BTC trading volume has fallen by 23.16% and is valued at $24.67 billion. With a market of $1.1 trillion, Bitcoin is the largest cryptocurrency in the world.
BTC trading at $69960 on the hourly chart | Source: BTCUSDT chart on Tradingview.com
Featured image from Forbes, chart from Tradingview
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