Bitcoin halving and the end of the bear market

The market is a mirror of many factors: However, there are a few that have greatly influenced the price of cryptocurrencies over time, and one of them is the Bitcoin halving.

In the past, Bitcoin’s halving has always affected the market in a positive way.

Therefore, investors are anxiously awaiting the event that could mark the end of this bearish market, and kick off the long-awaited bull market. The next halving is expected around 2024.

What is Bitcoin Halving? And why is it so important?

What is this event that could change the course of the market and likely open the next bull market cycle? We must first make a preamble.

As you know, the number of Bitcoins that can be mined is limited. In fact, the maximum number of Bitcoins in circulation can never exceed a quota of 21 million. When the quota is reached, production, i.e. mining, will cease.

For those who don’t know, miners, the people who mine Bitcoin, are rewarded with the coin itself.

The purpose of the halving is to reduce the “production rates” of mining, through halving the reward awarded to the miners. As a result, the number of Bitcoin issued in the market will be halved, and usually the value of Bitcoin tends to increase.

What by definition is simply a halving of the reward is one of the main factors that has driven Bitcoin so high so far.

Currently, around 900 BTC are created every day, but with the new halving scheduled for 2024, the production process will make only 450 BTC minable per day.

Why does it increase the price of Bitcoin?

After the halving of rewards, the supply of Bitcoin undergoes a severe downsizing and will thus affect all the dynamics of price formation. The pressure on the supply side tends to decrease and stimulates a greater demand on the demand side, and therefore an increase in the price.

So for this to happen, for the price of Bitcoin to go up, the demand for Bitcoin has to go up, or at least stay constant.

In conclusion, the halving process will not give us certainty that the price of Bitcoin will go up. Without a strong push on the demand side, there will be no end to the bear market and the beginning of the much hoped for bullish market.

The USD 100,000 prediction after the fourth halving

Making predictions about the price of Bitcoin is a favorite sport for investors. The $100,000 mark for Bitcoin is the missing milestone in demonstrating the asset’s power.

Among the many predictions that have been made regarding Bitcoin, the most related to the halving process came from the Morgan Greek CEO.

Mark W. YuskoCEO of Morgan Creek, a company specializing in investments and asset management, predicted that Bitcoin will exceed $100k after next halving. Certainly, one cannot say that the predictions of the CEO of Morgan Greek are always true or at least not very strange.

This prediction seems to have been the most quoted on Twitter also. $100,000 by 2024 doesn’t seem like an unattainable goal.

In case the halving of 2024 is repeated in the same way as before, Bitcoin may reach its all-time highs. Everyone knows that history’s most famous cryptocurrency is a trend setter, and with it the entire market will most likely recover.

Regardless of Bitcoin reaching $100,000, the cryptocurrency industry is here to stay and there are many other solutions besides BTC for secure digital payments.

In these testing times, the future looks bright for digital assets.