Bitcoin countdown: Only 100 days left until halving, triggering many predictions and analysis

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Entering 2024, the cryptocurrency world is looking forward to Bitcoin’s upcoming halving event, which is only 100 days away. After a bearish 2022, 2023 marked a recovery for the leading cryptocurrency, with Bitcoin increasing in value by 154%, although still lagging behind the stellar performance of many higher beta coins.

While the upcoming Bitcoin spot ETF has been hot news recently, an equally hotly debated driver of value is April’s halving event.

The halving, which occurs every four years, plays a key role in maintaining Bitcoin’s scarcity, limiting its maximum supply to 21 million. As of January 2023, the available Bitcoin supply is 19.59 million.

source: Encrypted quantification

Halving is an event that reduces the block rewards allocated to miners by half. In 2020, the reward plummeted from 12.5 Bitcoin to 6.25 Bitcoin. The upcoming 2024 halving event will further cut the reward to 3,125.

Looking back at history, price increases between halving events highlight their impact on Bitcoin’s value. After the 2016 halving, Bitcoin spot price surged 1,263% ahead of the 2020 halving.

An interesting metric to watch is the rise in Bitcoin spot price between the halving and subsequent all-time high (ATH). After the 2020 halving, Bitcoin surged by 654%.

Historical data shows the significant impact the halving event has on Bitcoin’s price trajectory. Between 2012 and the 2016 halving, the price surged a record 5,187%. Likewise, after the 2016 halving, the spot price of Bitcoin increased by an impressive 2,922%.

Importantly, these halving events often act as catalysts for price increases, creating upward momentum before and after the event and attracting the attention of institutional investors.

MicroStrategy (MSTR) is a well-known company in the cryptocurrency investment space. The number of Bitcoins they continued to buy during the year surged to 56,650, a significant increase from 8,109 in 2022. Notably, MSTR strategically increased its buying volume ahead of the April 2024 halving event, demonstrating institutional interest and confidence in Bitcoin’s post-halving trajectory.

The April halving is not far away. The crypto community is full of expectations, drawing inspiration from historical laws and institutional dynamics, and is eager to witness this important event. How will this affect Bitcoin’s journey in the next year?