Bitcoin Price Prediction: what to know about Bitcoin halving 2024?

The next Bitcoin (BTC) halving is expected to take place in April 2024, and it could significantly affect the cryptocurrency’s price. Learn everything you need to know about this upcoming event, including what a halving is, why it occurs, and how you can trade around it.

What is a Bitcoin Halving?

A Bitcoin halving (sometimes referred to as the "halvening") is an event where the reward for mining new blocks on the Bitcoin network is cut in half. This means that miners receive 50% fewer bitcoins for validating transactions and adding them to the blockchain. Halvings are scheduled to occur approximately every 210,000 blocks, or roughly every four years, until the total supply of 21 million bitcoins is reached.

Bitcoin halvings are significant for traders because they reduce the rate at which new bitcoins are introduced into circulation, effectively limiting the supply of new coins. If demand for Bitcoin remains strong, this reduction in supply can drive up prices.

Historically, Bitcoin’s price has tended to appreciate in the months leading up to and following a halving, though each event has unique circumstances, and demand for Bitcoin can be volatile. As a result, while past halvings have seen rapid price increases, the future price movement is never guaranteed.

Bitcoin price prediction

2024 kicked off with strong momentum for cryptocurrencies like Bitcoin and Ethereum, sparking excitement among crypto enthusiasts. As of November 12, 2024, Bitcoin (BTC) reached a remarkable all-time high of $89,604, with a market capitalization of $1.73 trillion—marking a 29.09% increase in just the past week.

BTC, the dominant cryptocurrency, has surged largely due to growing market confidence, boosted by the outcome of the U.S. presidential election and the victory of Republican candidate Donald Trump. Additionally, the recent 25 basis point rate cut by the Federal Reserve, lowering rates to a range of 4.50% to 4.75%, has further fueled optimism in the crypto market.

As of November 12, 2024, the general sentiment around Bitcoin remains bullish, according to Coincodex's price prediction, with 29 technical indicators signaling positive momentum and only 5 showing bearish signals.

Currently, there are approximately 19.78 million BTC in circulation across the cryptocurrency market.

Sumit Gupta, co-founder of CoinDCX, emphasized that Bitcoin's recent surge above $82,000 and its achievement of a historic $1.62 trillion market capitalization highlight Bitcoin's resilience and its growing appeal as a hedge against traditional market volatility. This surge reflects renewed optimism, driven by strong fundamentals and the recent U.S. election results, which point to potential pro-crypto policies ahead. Gupta also noted that increased institutional interest, facilitated by Bitcoin ETFs and clearer regulatory frameworks, further solidifies Bitcoin's position as "digital gold."

He believes that if regulatory environments become more favorable, we could see even greater institutional adoption, signaling the end of the crypto winter and a more robust digital asset ecosystem. The $100,000 price point is seen as the next major psychological milestone for Bitcoin, and reaching this level could be supported by further institutional inflows, ETF growth, and supportive regulatory changes. This momentum, combined with Bitcoin's fundamental qualities—scarcity, decentralization, and growing institutional acceptance—makes it an increasingly attractive asset for diversified portfolios.

Can Bitcoin Reach $1,000,000 by 2025?

While Bitcoin's potential for dramatic growth has long been a topic of speculation, current projections offer a more tempered outlook. According to Binance's price prediction, Bitcoin (BTC) could see a +5% increase in value, potentially reaching $107,124.58 by 2030.

The general sentiment remains bullish, with 36.69% of 3,584 surveyed users expressing optimism about Bitcoin's future performance. However, reaching the $1,000,000 mark by 2025 would require extraordinary growth, far beyond the current projections.

As of now, Bitcoin's path is shaped by a combination of market factors, including institutional adoption, regulatory developments, and broader economic trends. While $1 million is an ambitious target, Bitcoin's unique fundamentals continue to generate strong interest among investors.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.