The ongoing uptrend in the price of Bitcoin has pushed to the fore the potential in the outlook of the coin as it eyes a new halving by May next year.
Bitcoin (BTC) price is in the green today as the combined market capitalization of all cryptocurrencies is up 8.56% to $1.12 trillion. Bitcoin is leading the momentum today as its price crossed the $24,000 psychological level for the first time in more than 180 days.
At the time of writing, the coin is changing hands at $24,590.34, up by a massive 11.18% according to data from CoinMarketCap. The growth of the premier digital currency is evident that there is a significant fight against every form of suppression from regulators. The crypto ecosystem has been facing an uphill battle in terms of regulation for the better part of the last decade.
The intensity of the crackdown on the industry is even intensifying at the moment following the implosion of some of the most renowned startups in the space. While last year was filled with a bout of bankruptcies ranging from that of Celsius Network to Three Arrows Capital (3AC), that of FTX Derivatives Exchange came off as the straw that broke the Camel’s back.
With the commitment to protect retail investors, the United States Securities and Exchange Commission (SEC) has fined Kraken Exchange for an offering to stake, an offering it considered unregistered security. All of these events have contributed toward scaring investors off injecting cash into the premier digital currency.
The current uptrend in the price of the asset has re-introduced a whole new positive sentiment into the future of cryptocurrency. As the dominant market mover, the Bitcoin (BTC) price upsurge is also driving the growth of other key altcoins today. Ethereum (ETH) is up 8.65% to $1,681.79, Binance Coin (BNB) has jumped by 7.80% to $320.19 and XRP is changing hands at $0.3998, up 4.47% in the past 24 hours.
Future Price of Bitcoin (BTC), the Halving Effect
The ongoing uptrend in the price of Bitcoin has pushed to the fore the potential in the outlook of the coin as it eyes a new halving by May next year. The halving event has been proven to aid price growth as it slashes the rewards designated to the protocol miners by 50%. This reduces the total number of BTC that will be released into circulation thus creating scarcity.
Following the Halving event in May 2020, the reward was slashed to 6.25 BTC for every validated block. With the upcoming halving, this reward will even be slashed by half, trimming down the supply eventually.
Over time, the imbalance in the demand for Bitcoin (BTC) and its supply will push its price higher based on economics. On this, analysts have started projecting a massive uptrend from here onward. PlanB, the inventor of the Stock-2-Flow (S2F), has reiterated that the coin’s price can potentially hit $100,000 following the coming halving event.
Besides PlanB, Bloomberg Commodity Specialist Mike McGlone also supports the $100,000 Bitcoin price post 2024 halving.