April 19, 2024
By Anjali Kochhar
The Bitcoin halving, which occurs every four years, is set to once again impact the course of the cryptocurrency industry in 2024. The phrase “halving” refers to a drop in the rate at which new bitcoins are created, hence halving the reward for mining efforts. This process, hardcoded into Bitcoin’s protocol, seeks to maintain its scarcity and govern its overall supply, with the eventual goal of limiting the total amount of bitcoins to 21 million. The anticipation surrounding the halving is palpable, as it historically triggers increased attention from investors and can profoundly influence the price dynamics of Bitcoin and the broader cryptocurrency market.
One of Bitcoin’s key value propositions is the scarcity inherent in its architecture. The halving events serve as a reminder of this scarcity, with each decrease in the rate of new supply cementing Bitcoin’s position as a finite digital asset. Historically, these occurrences have been connected with increased market volatility and swings in Bitcoin price. As the supply of new bitcoins declines while demand remains consistent or increases, supply-demand dynamics frequently result in price appreciation.
Mohammed Roshan Aslam, CEO & Co-founder of GoSats, highlights Bitcoin’s accessibility compared to traditional investment avenues like gold, equity, and real estate, emphasising its digital nature. While acknowledging potential further price declines due to global macroeconomic events, Aslam sees the halving as advantageous for long-term investors. Despite cautioning against expecting the typical post-halving rally, Aslam predicts potential gains surpassing $100,000 after a possible 40%-50% decrease.
Edul Patel, CEO of Mudrex, anticipates a correction following Bitcoin’s recent record high but remains bullish post-halving. He notes the influx of new investors utilizing spot ETFs and foresees Bitcoin reaching $100,000 amid a bullish market trend. Vikram Subburaj, CEO of Giottus Crypto Platform, emphasises the historical impact of halvings on Bitcoin’s price while expecting altcoins like Ethereum and Solana to benefit from bullish market trends. He advises investors to stay informed and utilize tools like SIPs for strategic market entry.
Manhar Garegrat, Country Head of India & Global Partnerships at Liminal Custody Solutions, underscores the potential for heightened market volatility and increased trading activity surrounding the upcoming halving. He emphasises the importance of custody services in ensuring asset safety during such events, stressing the need for advanced security measures.
Shivam Thakral, CEO of BuyUcoin, anticipates short-term corrections post-halving but remains optimistic about Bitcoin’s future. He predicts a potential new all-time high in the coming months, alongside a decline in BTC dominance and increased interest in altcoins. Thakral points to the recent approval of Bitcoin and Ether ETFs in Hong Kong as a positive indicator of institutional acceptance, signalling a promising trajectory for Bitcoin’s future.
Jyotsna Hirdyani, South Asia Head at Bitget, highlights the halving’s role in maintaining scarcity and boosting prices. With miners strategically depleting their coin reserves before the event, anticipation runs high in the industry. Despite short-term uncertainties, Hirdyani remains optimistic, citing historical trends and institutional interest. The recent approval of ETFs in the US and Hong Kong further fuels optimism, with Bitcoin potentially surging to new all-time highs within 10-18 months.
As the crypto industry anticipates the forthcoming Bitcoin halving, there is a lot of conjecture about how it will affect the market. While past trends and expert observations provide useful perspectives, the future remains unpredictable, with a variety of factors impacting Bitcoin’s trajectory after halving.
Nevertheless, the consensus among experts points to a continued bullish outlook for Bitcoin and the broader cryptocurrency market, underpinned by growing institutional acceptance and the enduring narrative of scarcity. The halving serves as a reminder of Bitcoin’s unique characteristics and its potential to reshape the financial landscape in the years to come. As investors navigate through the volatility and uncertainty surrounding the event, strategic planning and adherence to sound investment principles will be paramount in capitalising on the opportunities presented by the halving and positioning oneself for long-term success in the dynamic world of cryptocurrencies.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
