Bitcoin investors have been riding high on profits over the last week, with the cryptocurrency gaining 9.34% to reach above $71,000 according to data from CoinMarketCap. The current market sentiment is filled with optimism as investors anticipate potential large price gains in the current bull cycle. However, Bitwise CEO Hunter Horsley has given a sobering perspective on the future, stating that the upcoming halving event in April 2024 could mark the most significant moment in Bitcoin’s trading history.
In a recent post, Horsley highlighted the importance of the Bitcoin Halving event by comparing it to the one in 2020. During the 2020 halving, when Bitcoin was priced at around $9,000, there was a substantial reduction in the token’s supply amounting to approximately $9 million per day and $3 billion per year. With Bitcoin’s current price at $70,000, Horsley forecasts a much larger reduction in supply, estimated at $32 million per day and $11 billion per year.
The anticipated significant decline in Bitcoin’s supply could lead to a decrease in selling pressure by miners, especially with the current surge in institutional demand. Hunter Horsley’s analysis suggests that all factors point towards a massive price surge for Bitcoin post the halving event. In a previous prediction made in February, the Bitwise CEO speculated that Bitcoin could reach $250,000 sooner than expected, driven by investor demand fueled by the Bitcoin spot ETF introduction.
As of now, Bitcoin is trading at $70,000 with a marginal 0.65% loss over the last day. Often referred to as ‘digital gold,’ the cryptocurrency has witnessed a 10.45% increase on its monthly chart following a price correction in February. However, the trading volume for BTC has decreased by 23.16% and currently stands at $24.67 billion. Despite the fluctuations, Bitcoin remains the largest cryptocurrency with a market cap of $1.1 trillion.
It is important to note that all information provided here is for educational purposes only. The opinions expressed in this article do not reflect those of NewsBTC, and it is crucial to conduct your own research before making any investment decisions. Investing in cryptocurrencies carries inherent risks, and it is advisable to use the information available here cautiously and at your own discretion.