The Halving of Bitcoin: A New Record?
On May 19, 2024, Bitcoin will be divided in half once more. Every time there is a halving, the price of bitcoin often rises in the months that follow. It’s crucial to keep in mind that there are numerous, intricate factors that contribute to the price of bitcoin. One of the variables that can affect the price of bitcoin is halving.
The global economy in 2024 might be in a significantly different place than it was during earlier halvings. The world economy has been significantly impacted by the COVID-19 epidemic, and those impacts can still be felt in 2024.
Additionally, the global economy may be impacted by the conflict in Ukraine. Energy and food shortages have been brought on by the war, and these shortages might last until 2024.
In this environment, it is challenging to say with certainty what will happen to the price of Bitcoin after the 2024 price halving. However, it’s possible that the halving will spur an increase in Bitcoin’s price.
Potential Drivers of Bitcoin’s Price
After the 2024 halving, a number of things could influence the price of Bitcoin. These elements consist of:
Bitcoin Scarcity: The halving makes the cryptocurrency scarcer by reducing the amount of Bitcoin in circulation. This might result in more people wanting it, which would raise the price of bitcoin.
Greater Bitcoin Adoption: The halving may result in greater Bitcoin adoption. This might be the case when investors’ confidence in Bitcoin’s future rises or as financial institutions start to accept it.
Infrastructure Improvements for Bitcoin: The halving might encourage infrastructure upgrades for Bitcoin. This could involve the introduction of fresh Bitcoin-related goods and services or improvements to the network’s security.
Factors That Could Depress the Price of Bitcoin
After the halving in 2024, there are more variables that could depress the price of bitcoin. These elements consist of:
Sluggish Global Economy: The demand for Bitcoin may be affected if the global economy is sluggish in 2024. This is because during times of economic uncertainty, investors may be more reluctant to invest in risky assets like Bitcoin.
Regulation of Bitcoin could impede the development of the cryptocurrency. Regulations may make it more difficult to use and obtain Bitcoin, which may have an impact on its price.
Emergence of New Cryptocurrencies: Bitcoin may lose some of its appeal if new cryptocurrencies start to gain traction. This might result in less interest in Bitcoin, which would drive down the price.
Conclusion
An important event that could significantly affect the price of the cryptocurrency is the halving of the Bitcoin supply. The halving will occur in 2024 in a challenging economic and geopolitical environment. The halving may function as a trigger for an increase in the price of the cryptocurrency; however, it is difficult to say for sure what will happen to Bitcoin’s price after that.