© Reuters.
NEW YORK – Market analysts are predicting a significant rally for bitcoin around its next halving event scheduled for April 23, 2024. Historical data has indicated that the cryptocurrency tends to experience substantial gains after such events, with more than 400% average annual returns recorded after previous halvings. This optimism is shared by many in the investment community, who are closely watching the upcoming reduction in bitcoin block rewards.
The halving event, a mechanism built into Bitcoin’s code to reduce the rate of new coin creation, is expected to reduce block rewards from 6.25 BTC currently to around 3.125 BTC at block height 840,000. This scheduled scarcity has traditionally led to an increase in the value of Bitcoin, and current market sentiment suggests a similar outcome after the April 2024 halving. Currently, the value of bitcoin is hovering around $43,800, and anticipation of a reduction in supply is fueling expectations of a price spike.
Additionally, the investment community is closely following the U.S. Securities and Exchange Commission’s (SEC) upcoming decision regarding a bitcoin spot exchange-traded fund (ETF). If the SEC approves such an offering, companies like BlackRock are ready to launch their products into the market. If the potential launch of a spot Bitcoin ETF is considered positive news, its impact on the price of Bitcoin is considered secondary compared to the effects of halving.
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