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As crypto markets brace for Bitcoin halving event, retail investors are attempting to unpack the potential impact on Bitcoin price, in this article, explore whether BTC price is poised to explode after the supply shock in 10 days.
The highly anticipated Bitcoin halving event is just over ten days away, and excitement among crypto traders is palpable.
Set for mid-April, the Bitcoin halving event will reduce miners’ block rewards by -50%, potentially positively impacting Bitcoin prices by reducing supply – as historical performances show.
Ahead of this, Willy Woo, a respected on-chain analyst, predicts that prices will not only rally but will go “ballistic,” citing tailwinds from other fundamental factors, including gold’s dramatic rise and macroeconomic conditions in the United States.
Is Bitcoin Price Ready To Go Ballistic Post-Halving?
Sharing a post on X, Woo notes that Bitcoin’s annual supply growth will drop from +1.7% to a meager +0.85%, effectively becoming scarcer than even gold, which boasts an annual supply growth rate of +1.6%.
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Bitcoin, supporters claim, is the digital version of gold – offering a safe heaven asset to protect capital from USD fluctuations.
If BTC’s inflation is lower than gold, the coin could see more inflows going forward considering the digital asset’s advantages.
This scarcity and the current inflationary environment in the United States could drive Bitcoin price to new levels, above recent all-time highs.
In the post on X, the analyst said that Bitcoin could truly take off when money supply increases, reverting from the current -1.7% to the normal 5-10% range. Even so, it remains to be seen how fast prices will rise, even with the money supply increasing.
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Economists expect the United States Federal Reserve to slash rates thrice in 2024. However, the number could drop to two with strengthening economic data from the country.
The Bottom Line: Long-Term BTC Holders Selling But Bulls Are Upbeat
Yet, with market sentiment and expectations of more BTC price gains, another analyst said history is repeating itself [insofar as the Bitcoin Halving cycle], judging by the behavior of long-term BTC holders.
Citing on-chain data, long-term Bitcoin holders (those who’ve held for over a year) are liquidating, like they usually do before halving, as prices near $74,000.
This selling pressure, evident in the rapidly dropping “1yr HODL wave,” may be picking steam – in a typical Halving dip as miners take profit on accumulated reserves.
However, as previous cycles show, it is likely BTC prices will continue to rise, and it is clear that bulls remain resilient – if this continues, the analyst predicts the coin will reach as high as $200,000 by July 2024.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
