Bitcoin stands on the brink of a price rally that may take it past $50,000 in 2024 due to the process of halving, analyists have predicted.
Halving cuts two-fold the amount of tokens miners receive. Economically speaking, the supply of this digital currency will be diminished and its price will go up as a result. Halving happens every four years and the next one is scheduled on April 2024.
The crypto asset regained 67% of its value after its 2022 downfall and currently is traded below $30,000. However, halving may trigger dramatic growth, according to analysts. Markus Thielen, research head at Matrixport, told US media that Bitcoin will be priced over $65,000 by April 2024. Another crypto analyst Jamie Douglas Coutts reportedly predicts that the digital asset will cost around $50,000 almost immediately after halving.
It comes after difficulties last year, with 2022 being a hard time for Bitcoin investors due to a regulatory crackdown on the crypto industry after the epic FTX collapse in November 2022 and global economic turmoil.
Halving is a technical procedure aimed at constraining inflation in the crypto industry. Tech entrepreneur and creator of Ethereum Vitalik Buterin draws a metaphor with gold: “The world reserves of gold are limited and with each new ounce this metal becomes harder to mine. As a result of this limited supply, gold retained its role of medium of exchange and of store of value for more than six thousand years."