Study Predicts Bitcoin Value Could Reach $115K after Halving (BTC-USD)

If you're looking for more than $70K, how about aiming for $115K in the near future? The upcoming halving event in Bitcoin's supply growth is predicted to push the price of the popular cryptocurrency to over $115K by 2024, based on a recent study by CoinLedger, a crypto tax-reporting firm. As per the study, a year after the last two halvings, Bitcoin's price surged by an average of 400%. The forecast is dependent on the token's value being around $69K at the time of the halving event in April.

A Bitcoin halving occurs when miners' rewards are reduced by half, cutting the pace at which new tokens are generated in half. This decrease in supply could potentially lead to an increase in the coin's price if demand remains steady or rises. Since the first halving in 2012 when the mining reward was slashed from 50 Bitcoins to 25, followed by reductions to 12.

5 and then 6.25 in subsequent halvings, the upcoming event in April will see the reward drop to 3.125.

Historically, after the halving events in 2016 and 2020, Bitcoin's price saw significant increases of 51.6% and 82.3%, respectively, within six months.

On average, following a halving event, there has been a 67.7% increase in Bitcoin's price. CoinLedger's projection suggests a potential high of $115,733 for Bitcoin post-halving.

While the optimistic outlook is prevalent, not everyone shares the same sentiment. J.P.

Morgan's analyst Nikolaos Panigirtzoglou warned of a potential drop to $42K post-halving, once the initial excitement settles after April. Currently, Bitcoin has surpassed $70K, reaching new highs and exhibiting a more than 50% increase year-to-date and over 200% year over year. Various factors driving this rally include increased investments in Bitcoin exchange-traded funds, anticipation around the halving event, and expectations of interest rate cuts by major central banks.

Despite the positive outlook, some analysts, like D Lombardo from SA, caution investors about a possible correction in the near future due to bearish on-chain metrics and overly optimistic sentiment surrounding Bitcoin's current market position.