BTC Price Predictions: 2024 Bitcoin Halving Impact on Market

BTC Price Predictions: 2024 Bitcoin Halving Impact on Market


Learn why the upcoming bitcoin halving event matters and its potential impact on the cryptocurrency’s price, as ChatGPT discusses the factors behind BTC’s price movements.

The Bitcoin (BTC) network is scheduled to undertake its fourth halving in less than a year, and the speculations on whether it will have an impact on the asset’s price have already begun.

After all, Bitcoin went on a wild run after the previous 3 examples. On the other hand, what does ChatGPT think about it?

Why Does the Bitcoin (BTC) Halving Matter?

Upon creating the Bitcoin (BTC) network, Satoshi Nakamoto incorporated an event happening at every 210,000 blocks (around four years) that essentially guarantees that the annual supply will be slashed in half.

The 1st one reduced the block bonus from 50 Bitcoin to 25 BTC, the Second (25 -> 12.5), and the third drove them down to the present 6.25. This implies that the digital currency’s current inflation levels are under 2 percent and will go further down as the bonus will be 3.125 Bitcoin after the 2024 halving.

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Despite the fact that there are greater than 19 Million Bitcoin mined already out of the total 21 Million supply ever to exist, the halvings make it so that the last mined Bitcoin (BTC) will be after greater than 100 years from now.

Basic regulations of economics dictate that if the supply of an investment declines while the demand remains the same or increases, its value should, at least in theory, rise.

This is perhaps why the previous 3 halvings acted as catalysts for the substantial bull runs. Looking at Bitcoin’s historical data shows that the investment traded at around $12 on November 2012 ( 1st halving) and exploded by almost 100x during a year to nearly $1,000.

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July 9, 2016, was the date of the Second halving, and 1 Bitcoin was worth around $670. A year thereafter – it stood at over $2,500. Bitcoin (BTC) traded at just under $9,000 during the May 2020 halving, and it skyrocketed to $69,000 within just over a year. Regardless of plummeting hard in the following few years, Bitcoin is still approximately 3x higher than its value during the last halving.

Given these price performances, the cryptocurrency community often speculates that bitcoin’s next bull run should begin somewhere within the following year, as the fourth halving is scheduled to take place in April 2024, reports by the current estimations.

ChatGPT on Bitcoin’s Halving

Consequently, we decided to ask ChatGPT for its take on the matter, given its significance. The highly- trending Artificial Intelligence (AI) chatbot was relatively careful in its wording, responding that it doesn’t have “access to real-time data or the  potential to predict future events such as BTC’s price.”

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It further pointed out that Bitcoin’s price is impacted by plenty of factors, including:

  • Market Demand
  • Investors Sentiment
  • Adoption Rates
  • Regulatory Developments
  • Technological Advancements
  • Macroeconomic Conditions

Nevertheless, ChatGPT admitted that Bitcoin’s price “has shown both increases and decreases surrounding halving events” and added:

“During the halving, the block reward for miners is reduced, which can impact the supply dynamics of Bitcoin. The reduction in supply, coupled with continued demand or increased market interest, has the  capacity to contribute to upward price movements.”

Nonetheless, the Artificial Intelligence (AI) chatbot likewise warned that “it’s critical to note that past performance is not indicative of future results.”

In the end, ChatGPT touched upon something critical about every investment, not just BTC. It stated people should do thorough research before allocating funds to any assets and not just rely on one source of information.

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You can find more of our ChatGPT-related content – here, here, and here.

Source

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