Bitcoin Halving and its Potential Impact on Price
The upcoming Bitcoin (BTC) halving, set to occur in five months, has investors eagerly anticipating the possibility of another significant bull market. Mitchell Askew, the Head Analyst for Blockware Solutions, shares this optimism and believes that the halving’s effect will continue to have exponential strength in future cycles.
Challenging Conventional Wisdom
Askew challenges the conventional wisdom that both Bitcoin (BTC) and the halving are subject to diminishing returns. He argues that the price of BTC is determined by the next trade and not influenced by previous investments. If there are no sellers at a particular price level, and the next ask is higher, the price immediately increases.
The Bitcoin Halving’s Impact on Bull Markets
The Bitcoin halving occurs approximately every four years and reduces the supply of new BTC issued by 50% after each block. Many believe that this event triggers bull markets due to a scarcity of BTC supply. However, some theorists suggest that the multiplier effect of halvings will decrease over time.
Why Bitcoin Can Still Experience Parabolic Growth
Contrary to this belief, Askew argues that as HODLers accumulate BTC over time, the available supply decreases. On-chain data also supports this claim, showing that Bitcoin’s available supply is currently at historic lows. Additionally, widespread adoption of BTC among average individuals could bring about an unprecedented surge in demand and disrupt previous price patterns.
Achieving New Heights
Askew concludes that with the potential global demand for BTC and its limited supply, there is still room for significant price increases. Despite a recent drop after a mass liquidation event, Bitcoin reached $44,500 last week.
Hot Take: Bitcoin’s Halving and Future Price Prospects
The upcoming Bitcoin halving has sparked excitement among investors, with the possibility of another bull market on the horizon. Mitchell Askew, Head Analyst for Blockware Solutions, challenges the notion of diminishing returns and believes that the halving’s impact will continue to have exponential strength in future cycles. He argues that BTC’s price is determined by the next trade and that HODLer accumulation decreases the available supply over time. With widespread adoption and limited supply, Bitcoin still has the potential for significant price growth. Despite recent fluctuations, the future prospects for BTC remain promising.
By
By
By
By