Bitcoin’s Path in 2024: What to Expect

Halving and Its Impact

Bitcoin’s price has historically followed a pattern centered around the halving event, which occurs every four years. During halving, the reward for miners is cut in half, reducing the supply of new Bitcoin.

This has led to price surges in the past. After the 2012 halving, Bitcoin’s price jumped from $12 to over $1,000. In 2016-2017, it rose from $650 to nearly $20,000. After the 2020 halving, it climbed from $8,500 to its all-time high of $69,000 in 2021.

Analysts expect a similar surge after the next halving in April 2024. Bitcoin’s scarcity, with its limited supply of 21 million coins, and increasing demand from investors, are expected to drive this growth.

Bitcoin ETFs and Adoption

The approval of Bitcoin exchange-traded funds (ETFs) in January 2024 has made Bitcoin more accessible to traditional investors. This has led to a significant capital influx, which is expected to further boost the price.

Additionally, Bitcoin and other cryptocurrencies are gaining adoption among institutional and retail investors. The number of crypto users globally has increased by 35% in 2023, and Ordinals, a protocol for hosting data on the Bitcoin blockchain, is also driving adoption growth.

Long-Term Outlook

Bitcoin’s price has consistently increased over the years due to its scarcity and growing demand. The upcoming halving is likely to fuel another growth phase in 2024-2025.

However, short-term price movements can be unpredictable and depend on market conditions. Investors should exercise caution and make informed decisions based on the latest market developments.