Bitcoin (BTC) investors enjoyed a lot of gains last week as the crypto asset rose 9.34% to trade above $71,000, based on data from CoinMarketCap. Most of the BTC market is currently very excited about the significant price increase that the current bullish cycle could bring.
However, Bitwise CEO Hunter Horsley commented on the near future, saying that the upcoming halving event, which is a key part of the bullish cycle, could result in an impending significant reduction in the token's supply, leading to a decline in Bitcoin trading. He said it could be the most important in history.
Bitcoin Price Affects Supply Decrease and Token Demand – Bitwise CEO
In a March 29 post on He shared that there is. For context, Bitcoin halving is a phenomenon that occurs every four years when a BTC miner's block reward is cut in half.
The April 2024 Bitcoin halving may be the most impactful we've ever seen. why?
During the last Bitcoin halving, in 2020, Bitcoin was around $9,000. Therefore, the reduction in supply in dollar terms amounts to about $9 million per day, or about $3 billion per year.
At ~$70,000 in Bitcoin, this halving is more than tripled in $ terms: ~$32 million…
— Hunter Horsley (@HHorsley) March 29, 2024
Horsley began his prediction by mentioning the last halving in 2020, when BTC price was around $9,000. Bitwise CEO stated that after the halving effect, Bitcoin token supply decreased significantly, reaching up to $9 million per day and up to $3 billion per year.
Horsley estimates that given that the price of Bitcoin is currently hovering around $70,000, the expected supply reduction is likely to be at least three times as much in dollar terms. I believe that it has been done. 32 million dollars per day, 11 billion dollars.
Horsley predicts that the rise in Bitcoin prices will significantly reduce the natural selling pressure from miners, along with the expected significant reduction in Bitcoin supply. Furthermore, Bitwise CEO stated that this development will be completed in line with the current growing demand from institutional investors.
In general, all the factors highlighted by Hunter Horsley indicate that Bitcoin is likely to experience a significant price increase following the halving event. In early February, the Bitwise president predicted that BTC could reach $250,000 faster due to investor demand with the introduction of the Bitcoin Spot ETF.
BTC price overview
At the time of writing, BTC was trading at $70,000, with a loss of 0.65% on the last day. The widely acclaimed 'digital gold' is currently up 10.45% on the monthly chart after February's price correction.
Meanwhile, BTC trading volume decreased by 23.16% to $24.67 billion worth. With a market size of $1.1 trillion, Bitcoin ranks as the world's largest cryptocurrency.
Featured image from Forbes, chart from Tradingview
