Bitcoin Halving and Price Appreciation
The famous crypto investor Scott Melker, also known as “The Wolf of All Street,” predicts that Bitcoin’s halving will lead to a strong appreciation of the currency. Based on past halvings, Melker suggests that the value of Bitcoin could reach $240,000 at the end of the next bullish cycle. This projection takes into account the percentage growth observed from Bitcoin’s peak in 2017 to that of 2021.
Fourth Halving: Decreasing Block Rewards
The Bitcoin halving is an event encoded in the Bitcoin PoW protocol that occurs approximately every four years. It halves the rate of new cryptocurrency issuance by reducing block rewards for miners. Currently, miners are rewarded with 6.25 BTC per block. The next halving, expected in April 2024, will reduce the block reward to 3.125 BTC.
While this may seem disadvantageous for miners, historically, every halving has been accompanied by a rise in Bitcoin’s price, offsetting the reduction in block rewards. This provides a solid earning base for PoW network operators.
Scott Melker’s Forecast: $240,000 Price Target
In an interview, Scott Melker predicts that Bitcoin could reach $240,000 after the fourth halving. He compares this to the growth percentage observed during the last bullish cycle when Bitcoin went from $20,000 in December 2017 to $69,000 in November 2021, a roughly +250% increase against the US dollar.
While there are no guarantees for such growth, Melker’s predictions are not unfounded. The current macroeconomic context and the approval of Bitcoin spot ETFs provide a changed overall framework compared to the past that could surprise crypto investors.
Hot Take: Ambitious Predictions for Bitcoin’s Future
Scott Melker and other experts have made ambitious predictions for Bitcoin’s future price. Melker believes that Bitcoin could reach $240,000, while Anthony Scaramucci and Standard Chartered predict prices of $170,000 and $200,000, respectively. While these predictions may seem exaggerated, the past cycles of Bitcoin’s growth suggest that further appreciation is possible. The upcoming halving and changing market dynamics contribute to the uncertainty surrounding Bitcoin’s future price. However, as long as the current cycle continues to work, it is likely that we will see Bitcoin’s value rise significantly in the coming years.
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