Over the weekend, the crypto market experienced a small downturn, led by Bitcoin, which resulted in a decrease in the global market cap to $2.48 trillion. One possible reason for this correction could be the rising inflation rates in the United States, along with the escalating tensions between Iran and Israel on a global scale.
However, there is potential for a market recovery as Bitcoin’s halving event approaches. Currently, BTC is valued at $66,251.16, showing a slight increase of 0.3% in the past hour and a 2.5% increase compared to yesterday. Its current value is 8.2% lower than it was a week ago.
Bitcoin halving is just around the corner. The current global crypto market cap stands at $2.53 trillion, with a 3.46% change in the last 24 hours and a significant 90.96% change compared to a year ago. BTC’s market capitalization is currently at $1.3 trillion, representing a Bitcoin dominance of 51.48%.
Meanwhile, Stablecoins hold a market cap of $157 billion, accounting for a 6.18% share of the overall crypto market cap.
The highly anticipated Bitcoin halving, which has attracted attention from Wall Street analysts who believe it could potentially double BTC’s value and increase the market cap by $1 trillion in the next year, is set to take place this week.
However, don’t expect a grand event like the total solar eclipse. The BTC halving will likely go unnoticed by most people. There won’t be a massive gathering to witness it, and Satoshi Nakamoto, the pseudonymous creator of BTC, won’t be making appearances on late-night television. Instead, you can expect to see numerous Bitcoin discussions taking over your social media feeds, especially on X.
This event is determined entirely by algorithms rather than real-world factors. Every four years, the BTC algorithm adjusts the mining rewards for BTC miners by halving them. Currently, miners receive 6.25 BTC for each block they contribute to the BTC blockchain. However, starting from April 19, the reward will be reduced to 3.125 BTC.
The history and facts surrounding Bitcoin halving reveal interesting insights. According to the algorithm, the maximum number of BTC coins that will ever be available is 21 million. Currently, there are 19.7 million coins in circulation, meaning that 94% of the total Bitcoin supply has already been generated.
This is why many crypto analysts predict a significant “supply squeeze” or “supply shock” as individuals rush to acquire the limited supply of Bitcoin. Reports already indicate that the supply of Bitcoin on crypto exchanges is starting to dwindle. This squeeze could intensify after the halving, especially with the influx of demand from spot Bitcoin ETFs, causing the price of Bitcoin to surge.
By examining previous Bitcoin halving cycles, we can observe the undeniable impact of the scarcity effect. In 2012, for example, the price of Bitcoin surged from $12 to $1,161, a staggering gain of 9,575%! The 2016 halving saw Bitcoin’s price skyrocket from $600 to $20,000, resulting in a remarkable gain of 3,233%. Following the 2020 halving, Bitcoin’s value surged from $9,000 to $69,000, an impressive gain of 667%.
These are not modest increases. They represent significant parabolic movements that are unparalleled in the financial asset records. It’s no wonder that hedge fund managers and crypto analysts are raising their price predictions for Bitcoin in the post-halving cycle of 2024.
Experts increasingly agree that the price of Bitcoin could reach $150,000 by the end of 2025. This would more than double its current value and lead to a substantial increase in market cap, surpassing $1 trillion.
