According to a recent analysis by a leading cryptocurrency researcher, the upcoming halving could trigger a record rally and send the price of Bitcoin soaring to over $100,000.
The halving, which is set to take place in May 2024, is a built-in mechanism in the Bitcoin network designed to control the rate of new coin generation. The process reduces the number of bitcoins mined per block from 12.5 to 6.25, which means that the number of new bitcoins entering the market will be cut in half.
Historically, the halving has had a significant impact on the price of Bitcoin. In 2012, the first halving saw the price of digital currency increase by over 8,000%. In 2016, the second halving saw the price of Bitcoin rise from around $400 to a peak of nearly $20,000 in December of that year.
The analyst suggests that the upcoming halving could have an even more significant impact on the price of Bitcoin. The reason for this is that the current market conditions are much different than they were in the past. The analyst points out that the current market is characterized by a high level of institutional adoption, which is expected to continue to grow in the coming years.
The institutional adoption of Bitcoin has been driven by a growing number of companies and financial institutions recognizing the potential of digital currency. For example, companies such as MicroStrategy and Square have recently purchased large amounts of Bitcoin as a hedge against inflation. Furthermore, a growing number of payment companies, such as PayPal, are now allowing their customers to buy, hold and sell Bitcoin on their platforms.
The analyst’s prediction is that the halving, coupled with continued institutional adoption, will trigger a record rally that will send the price of Bitcoin soaring to over $100,000.
While it’s impossible to know for sure what will happen, the halving is a significant event that has historically had a major impact on the price of Bitcoin. As the halving approaches, investors will be closely watching to see how the market reacts and whether the predictions of a record rally come true.