The recent completion of the fourth Bitcoin halving has piqued the interest of crypto investors who eagerly await the impact on Bitcoin and other cryptocurrencies’ prices. Given Bitcoin’s dominance in the crypto market, the halving event holds significant importance for all investors as most altcoins’ prices are closely tied to Bitcoin’s.
Matt Hougan, the CIO of Bitwise Asset Management, views the just-concluded Bitcoin halving as a chance for investors to buy into the market.
Bitcoin Halving: An Opportunity to Act on News?
Bitcoin halving events are widely anticipated in the crypto community. During an interview on CNBC’s Squawk Box, Hougan indicated that Bitcoin’s prices historically rise significantly after a halving, making it an advantageous “buy the news” event, especially for long-term investors.
Hougan pointed out the substantial price increases seen in Bitcoin in the year following previous halving events, attributing this surge to a reduction in the new supply of Bitcoin hitting the market post-halving.
“By halving the new supply of Bitcoin entering the market, we are effectively removing $11 billion in annual supply. In the broader picture, this reduction should positively impact the price in the coming year,” Hougan stated.
Regarding Bitcoin’s potential as a store of value amid geopolitical tensions, particularly in regions like the Middle East, Hougan emphasized the cryptocurrency’s utility in providing protection against inflation and potentially serving as a hedge in times of geopolitical disruptions.
Future Outlook for Bitcoin
Following the most recent Bitcoin halving, which reduced the miner rewards from 6.25 BTC to 3.125 BTC, the concept behind each halving is straightforward – with fewer new bitcoins in circulation, existing bitcoins could gain value. Past halving events have shown short-term price fluctuations followed by significant price surges over the course of a year.
For instance, Bitcoin experienced a 458% price surge around nine months after the 2020 halving. Should historical trends repeat, a similar surge could potentially drive the Bitcoin price to approximately $345,000 by early 2025.
Currently, Bitcoin is trading at $64,870, showing over a 130% increase in the year leading up to the recent halving. A comparable 130% surge post-halving could push the Bitcoin price to $150,000 by mid-2025.
Interestingly, this projected price aligns closely with Anthony Scaramucci’s forecast, founder of SkyBridge Capital, who predicted a Bitcoin price of at least $170,000 by the end of the current market cycle.
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