Bitcoin Halving: Market Not Fully Prepared for Supply Shock

The Bitcoin world is buzzing with excitement as we edge closer to the Bitcoin halving event, a key moment that could shake up the entire cryptocurrency market.

by Faruk Imamovic
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Bitcoin Halving: Market Not Fully Prepared for Supply Shock
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The Bitcoin world is buzzing with excitement as we edge closer to the Bitcoin halving event, a key moment that could shake up the entire cryptocurrency market. Even though Bitcoin has already hit record-breaking highs, some folks think the market hasn't fully caught up with what the halving could mean for Bitcoin's value down the line.

The Big Squeeze: Supply and Demand

Basile Maire, who helped start the D8X decentralized exchange and used to be a big shot at UBS, chatted with Cointelegraph about what's happening right now in the crypto scene. He put it simply: "When the halving hits, we're going to see more people wanting Bitcoin, but there'll be less of it to go around.

Usually, that means the price should go up. But has the market really factored this in yet? I don't think it's fully caught on." In about a month, the Bitcoin halving will cut the number of new Bitcoins being made in half, from 6.25 BTC to just 3.125 per block.

Maire thinks this big drop in new Bitcoin hitting the market hasn't been fully baked into Bitcoin's price yet.

What's Next for Bitcoin?

Investors are already betting big, with some expecting Bitcoin to reach up to $100,000 by May.

Maire pointed out, "We're seeing a lot of action in options betting on Bitcoin hitting between $80,000 and $100,000. There was a noticeable jump in interest for hitting $100,000. It's not a massive wave, but it's definitely something to watch." The upcoming U.S.

presidential election is also expected to give the crypto market a boost. With the growing link between traditional stock markets and cryptocurrencies, thanks to U.S. spot Bitcoin ETFs, the outlook is looking pretty good. Sergei Gorev, a risk expert at YouHodler, mentioned, "These Bitcoin ETFs are snapping up 10 times more Bitcoin each day than what's being mined." Right now, Bitcoin ETFs have over $60.5 billion in Bitcoin, and if they keep buying at this rate, they could end up owning 8.82% of all Bitcoin out there within a year. This flood of investment, combined with the squeeze from the halving, could lead to a big jump in Bitcoin's price.

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