Over the weekend, there was a slight correction in the cryptocurrency market, led by Bitcoin, resulting in a decrease in the global market cap to $2.48 trillion. One possible reason for this correction could be the significant increase in inflation rates in the United States, combined with the escalating tensions between Iran and Israel on a global scale.
However, there is potential for a market rebound as Bitcoin’s halving approaches. Currently, the value of Bitcoin (BTC) stands at $66,251.16, showing a slight 0.3% increase in the last hour and a 2.5% increase compared to yesterday. The current value of BTC is 8.2% lower than it was a week ago.
The current global crypto market cap is $2.53 trillion, with a 3.46% change in the last 24 hours and a significant 90.96% change compared to one year ago. BTC’s market capitalization is currently $1.3 trillion, indicating a Bitcoin dominance of 51.48%.
In the meantime, Stablecoins have 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 lead to a doubling in BTC’s value and a $1 trillion increase in market cap over the next year, is set to occur this week.
Just a heads up, the BTC halving is scheduled for around April 19, and it may go unnoticed by most people. There won’t be a large crowd gathering in one place to witness the event, similar to what happened during a total solar eclipse.
Additionally, you won’t see Satoshi Nakamoto, the pseudonymous creator of BTC, making appearances on late-night television. What will happen? You’ll see a plethora of #Bitcoin discussions taking over your social media feeds, especially on X.
That’s because everything is determined by algorithms rather than real-world factors. Every four years, the BTC algorithm adjusts the mining rewards for BTC miners, cutting them in half. Currently, BTC miners are rewarded with 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.
Based on the algorithm, the maximum number of BTC coins that will ever be available is 21 million. It’s worth noting that the current circulating supply is 19.7 million coins, indicating that a significant 94% of the total Bitcoin supply has already been generated!
This is why several crypto analysts predict the possibility of a significant “supply squeeze” or “supply shock” as individuals scramble to acquire the limited supply of Bitcoin. Similar to other markets, there are already reports indicating that the supply of Bitcoin on crypto exchanges is beginning to diminish.
As a result, this “supply squeeze” has the potential to become highly intense following the halving. With the influx of demand from spot Bitcoin ETFs, it becomes clear how the price of Bitcoin could experience a significant surge.
By examining past Bitcoin halving cycles, one can easily see the undeniable impact of the scarcity effect. Like clockwork, Bitcoin has gone through three previous halving cycles. These cycles, occurring in 2012, 2016, and 2020, have consistently resulted in substantial price increases for Bitcoin, propelling it to reach new record highs.
Take the 2012 halving, for example. The price of Bitcoin experienced an incredible surge, going from $12 all the way up to $1,161. That’s an astonishing gain of 9,575%! Just look at the incredible surge in Bitcoin’s price after the 2016 halving. It skyrocketed from a mere $600 all the way up to an astonishing $20,000, resulting in an extraordinary gain of 3,233%.
Following the 2020 halving, the value of Bitcoin experienced a remarkable surge, skyrocketing from $9,000 to $69,000, resulting in an impressive gain of 667%.
So we’re not just talking about a modest 10% increase here. We’re talking about significant parabolic movements that are truly unparalleled in the history of financial assets. It’s no wonder that hedge fund managers and crypto analysts are increasingly raising their price predictions for Bitcoin in the post-halving cycle of 2024.
According to experts, there is a growing consensus that the price of Bitcoin could reach $150,000 by the end of 2025. This would represent a significant increase, more than doubling its current value, and result in a substantial increase in market cap, surpassing $1 trillion.
