Crypto Venture Fund Predicts Bitcoin Price Surge After Halving Event
Crypto venture fund Pantera Capital has predicted that the price of Bitcoin could surge to $148,000 after the upcoming halving event scheduled for next year. Using a metric called the stock-to-flow ratio, Pantera suggests that the price could reach $35,000 before the event and then skyrocket to $148,000 after. The stock-to-flow ratio measures the existing supply of an asset relative to the new supply entering the market, with a higher ratio indicating scarcity and potential price increase. Bitcoin halving events, which reduce the number of new bitcoins entering circulation by half, have historically been associated with increased prices due to the impact on the stock-to-flow ratio. The next halving is expected to occur in April 2024, reducing the per-block reward to 3.125 bitcoins from the current 6.25 bitcoins per block.
Main Key Points:
– Pantera Capital predicts Bitcoin’s price could reach $148,000 after the halving event next year.
– The stock-to-flow ratio is a measure of an asset’s existing supply relative to new supply entering the market.
– Bitcoin halving events have historically led to increased prices due to the impact on the stock-to-flow ratio.
– The 2024 halving will reduce the per-block reward to 3.125 bitcoins from the current 6.25 bitcoins per block.
– Besides the halving event, recent developments such as the XRP ruling and a Bitcoin ETF application by BlackRock provide a positive outlook for the next bull market for digital assets.
Hot Take:
Pantera Capital’s prediction of a surge in Bitcoin’s price after the halving event aligns with the historical trend of increased prices following such events. The stock-to-flow ratio, scarcity, and reduced supply of new bitcoins all contribute to the potential for a higher price. With additional positive catalysts such as the XRP ruling and the BlackRock ETF application, the stage is set for a strong rally in the digital asset market. It will be interesting to see if history repeats itself and Bitcoin experiences a significant price increase in the lead-up to and aftermath of the halving event in 2024.
By
By
By
By
By