A bitcoin reward halving set for April 2024 could push the asset to new all-time price highs if the pattern of previous halvings repeats.
Scott Melker, an influential crypto analyst with nearly 1 million followers on X, recently explained the bitcoin halving event scheduled for April 2024 and outlined why it might send the as high as $240,000.
Perspective: Bitcoin reward halvings occur at predetermined block intervals roughly every four years and past events have resulted in significant price gains. Because this deflationary event is predetermined by bitcoin’s underlying protocol and thanks to the fact that it has occurred three other times in the past, analysts can extrapolate how the upcoming iteration might impact the current market.
Looking at the historic heading into its previous halvings and assuming the impact will be the same this cycle, Melker made a six-figure price prediction.
“(In the last halving cycle) you go from that $20,000 high all the way up to the $69,000 high, that’s an appreciation of 250.86%,” he explained while evaluating bitcoin’s price history. “If we even take that next 250% and take it from that $69,000 (all-time ) high into the next cycle, we’re looking at bitcoin around $240,000.”
More details: Melker also explained the halving on a technical level, which can often be mysterious to traditional investors.
“The bitcoin halving will occur when the number of blocks that are mined reaches 840,000 in April 2024, then the reward per block will decrease from 6.25 to 3.125 bitcoin,” Melker said. “This basically means that the new supply being issued is cut in half. It becomes twice as difficult for miners to make money mining bitcoin.”
Key takeaways: Bitcoin’s capped supply — a critical aspect of its value proposition as a deflationary store of value — and its periodic issuance halvings are fundamental to the four-year market cycles that have continuously wrought exponential price gains.
Crypto investors are optimistic that April’s event will repeat this history, with Anthony Scaramucci making a $170,000 price prediction and Standard Chartered factoring the halving into a potential $100,000 bitcoin price by year’s end.
“I know it might seem like hyperbole to talk about bitcoin being $170,000 or $220,000 or even, one day, $1 million,” Melker concluded. “But if it ain’t broke, don’t try to fix it. This cycle has worked in the past and until I see it not working in the future, I’m going to bet that we see bitcoin over $200,000.”
The context: The bitcoin price has been rebounding following significant outflows from Grayscale’s spot bitcoin exchange-traded fund (ETF) in the last two weeks. As of this writing, it sits at just below $42,000, up about 3% in the last seven days.
The content of this article is not meant to constitute financial advice.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In This Story
BTC
Roundtable
We empower and unify inspired journalists and evangelists to deliver uncensored, truthful information and to educate – by giving them major media distribution and sustainability. Our contributors are some of the most knowledgeable and experienced in the space, and offer analysis that cannot be found anywhere else.
Read Roundtable's Bio