Three Weeks Left till Bitcoin Halving 2024, Big Boost for Bitcoin ETF

In approximately three weeks from now, on either April 19 or April 20, the long-anticipated Bitcoin halving in 2024 is expected to take place. This event will occur when the number of blocks mined reaches approximately 837,000, give or take a day, according to current estimates. Some market analysts suggest that the halving may occur on April 20 instead.

The Bitcoin halving process signifies an automated decrease in Bitcoin rewards for miners. This decrease happens approximately every four years and is triggered by reaching 210,000 blocks in the blockchain. In the upcoming Bitcoin halving event, the reward given to miners will drop from 6.25 BTC to 3.125 BTC.

Some Bitcoin miners are now making plans for the future following the recent halving event. Many of these miners have sold off their Bitcoins over the last few months and used the revenue to purchase more advanced mining hardware.

Previously, Bitcoin’s halving events have generally led to price increases for investors due to decreased supply. Consequently, some optimistic forecasts predict that the bitcoin price could reach $200,000 by the end of 2025.

Bitcoin Halving 2024 Potentially Boosts ETF Momentum

Canaccord Genuity, a well-known brokerage firm, recently published a report detailing Bitcoin’s impressive 60% price increase during the first quarter. This rise was mainly driven by the introduction of spot Bitcoin ETFs on the market, the upcoming reward halving event, and a heightened risk tolerance among investors.

Michael Graham and his team of analysts pointed out that although the broader economic picture is still unclear, the upcoming Bitcoin halving may provide additional support for Bitcoin ETFs. They also noted that there has been a noticeable pickup in activity within the cryptocurrency market, bouncing back from the slump experienced in 2023.

The upcoming bitcoin halving in April, which cuts miner rewards by half and decreases the number of Bitcoins in circulation, is eagerly awaited. Canaccord Genuity is hopeful that the SEC will give its green light to 11 US Bitcoin spot ETFs during this period. This positive development could lead to a prolonged surge in demand as retail investors look to add crypto assets to their tax-efficient retirement plans such as IRAs.

In addition, the report reveals that Bitcoin miners with public listings fell short of BTC‘s performance during Q1. This finding underscores their growing disconnection from Bitcoin’s price. Consequently, there is mounting doubt regarding the profitability of these miners in the wake of the upcoming halving event.

An alternate option for equity investors looking to gain access to Bitcoin is through Bitcoin ETFs, as mentioned by Canaccord. Historically, there might be a more bullish phase for Bitcoin in the ensuing months after the halving event takes place.

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2024-03-29 18:12