Bitwise CEO Predicts $11 Billion Drop In Bitcoin Supply Post Halving

Over the past week, Bitcoin investors have reaped significant profits with the crypto asset surging by 9.34% to over $71,000 according to CoinMarketCap data. The Bitcoin market is currently buzzing with anticipation as investors eagerly await potential large price increases during this ongoing bull run.

In the near term, Bitwise CEO Hunter Horsley believes that the approaching halving event, which is typically a bullish indicator for Bitcoin, may lead to a substantial reduction in the cryptocurrency’s circulating supply. As a result, this upcoming event could be the most impactful in Bitcoin’s market history, potentially causing a significant decline in the token’s availability and driving up demand and prices.

Bitcoin Price To Impact Supply Reduction And Token Demand – Bitwise CEO

On March 29, Hunter Horsley posted an update on X, predicting that the upcoming Bitcoin Halving in April 2024 might bring about the most significant impact on supply and demand in the history of the asset. To clarify, Bitcoin Halving is a recurring event (happening approximately every four years) where the reward given to miners for each block they mine gets cut in half.

The April 2024 Bitcoin halving may be the most impactful we’ve seen. Why?

In simpler terms, during the last Bitcoin halving in 2020, the price of Bitcoin was approximately $9,000. This means that each day, the Bitcoin supply was reduced by around $9 million in US dollar value, and annually, this reduction amounted to roughly $3 billion.

This halving with Bitcoin ~$70,000, it will be >3x greater in $ terms: ~$32M a…

— Hunter Horsley (@HHorsley) March 29, 2024

Horsley initiated his forecast by bringing up the previous Halving in 2020 when Bitcoin’s price was approximately $9,000. The Bitwise chief executive explained that a substantial reduction in the number of Bitcoin tokens occurred after the Halving event, amounting to roughly $9 million daily and $3 billion yearly.

With Bitcoin’s present value approximately at $70,000, Horsley anticipates a significant decrease in supply, which could amount to at least $32 million every day or around $11 billion in total.

If the price of Bitcoin increases, Horsley anticipates a significant reduction in Bitcoin’s circulation supply. This reduction is expected to be compounded by a decreased urge among miners to sell naturally. Furthermore, Horsley points out that this trend aligns with the current surge in institutional investment interest.

In simple terms, according to Hunter Horsley’s analysis, we can expect a significant price increase for Bitcoin after the Halving event. Previously in February, Bitwise Asset Management’s CEO, Horsley, forecasted that Bitcoin could reach $250,000 due to heightened investor demand resulting from the launch of a Bitcoin spot ETF.

BTC Price Overview

Currently, Bitcoin is being traded for around $70,000, representing a 0.65% decrease from the previous day. Known as “digital gold,” this popular cryptocurrency has experienced a gain of 10.45% over the past month, bouncing back after its price correction in February.

At present, the Bitcoin trading volume has dropped by 23.16%, amounting to $24.67 billion. As the largest cryptocurrency with a market size of $1.1 trillion, Bitcoin holds this position.

Bitwise CEO Predicts $11 Billion Drop In Bitcoin Supply Post Halving

BTCUSDT chart on Tradingview.com

Read More

2024-03-30 11:46