Crypto News – The recent US introduction of spot Bitcoin ETFs means that the supply and demand dynamic for bitcoin will be even more favorable than it was following the halvings in 2012, 2016, and 2020. Mining incentives will drop from 6.25 BTC ($418,800) to 3.125 BTC ($209,400) at block 840,000, which is anticipated to happen on April 20.
What’s Differentiating the 2024 Bitcoin Halving from the Others?
Four or five months following the halving, history indicates that the price of Bitcoin begins to rise gradually and surpass previous all-time highs. Bitcoin’s price was $8,750 on May 11, 2020, the day of the previous halving. By mid-March 2021, it had risen 430% in just five months, from $11,500 to $61,300. The previous all-time high of $19,665 on December 16, 2017, was destroyed in the process.
Demand for Bitcoin May Increase as Halving Reduces Supply
The main reason for this, according to analysts, is spot Bitcoin ETFs, which have drastically altered the dynamics of Bitcoin’s supply and demand, says Hashlab Mining founder and chief strategist Jaran Mellerud. While just 900 BTC are mined daily, spot Bitcoin ETF providers are collecting 2,450 BTC daily, according to Mellerud.
This number will fall to 450 BTC post-halving in late April where the ETFs will be sweeping up BTC at a rate five times higher than BTC’s post-halving supply growth. This huge imbalance between supply and demand will lead to a continuous but volatile upward grind of the BTC price.
Mellerud
According to Mellerud, this will increase demand for Bitcoin at a time when the halving will decrease supply. As a result, he anticipates a significant increase in the price of Bitcoin. According to Mellerud, who pointed out that Bitcoin’s hash rate is five times higher than it was at the previous halving, the network’s health has also improved.
It now requires five times more computing power and associated electricity supply, electrical infrastructure, and mining hardware to attack the network.
Mellerud
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