A Perfect Storm of Demand and Supply
The crypto community is buzzing with anticipation as the highly anticipated Bitcoin Halving event is set to commence in just a few hours. This event, occurring roughly every four years, reduces the number of new bitcoins created and earned by miners by half. This reduction in supply, coupled with increasing demand, has created an exciting setup for the crypto industry.
a demand shock from the launch of spot Bitcoin ETFs and a supply shock from the Halving. This confluence of events has created a unique opportunity for investors.
However, experts warn of potential volatility in the market following the Halving. Crypto trader The Flow Horse predicts a series of bounces and drops, with a 20% drop after the first bounce leading to panic selling. This pattern of volatility is expected to repeat several times before the market slows down.
Despite the potential for volatility, many experts remain optimistic about Bitcoin's future. Crypto trader PlanB estimates a 4x surge in Bitcoin's price within the next 6 to 18 months following the Halving, driven by increased institutional adoption.
As the Bitcoin Halving unfolds, investors are advised to approach the market with caution and be prepared for rapid changes in market conditions. The Benzinga's upcoming Future of Digital Assets event on November 19th will delve deeper into the influence of Bitcoin as an institutional asset class.