Bitcoin price prediction: What is the impact of halving on BTC

investing.com:

As Bitcoin once again captures attention, the concept of «halving» has emerged as a crucial factor influencing the cryptocurrency's value and market dynamics. As a result, many market participants are providing their latest bitcoin price prediction.

Understanding the impact of halving on Bitcoin is essential for investors. Bitcoin halving occurs every four years. It is an event that halves mining rewards and reduces Bitcoin supply. As a result, the impact is hotly debated, with the leading cryptocurrency usually rising after the event.

After previous halvings, the price of Bitcoin has generally risen not long after. However, it is rare to see BTC hit a new all-time high ahead of the event.

Bitcoin hit a new high of well over $73,000 last week, although it pulled back to above the $64,000 mark over the weekend. Nevertheless, it is now back over $68,000.

For the year-to-date, Bitcoin is up more than 61%, while in the last 12 months, it has risen more than 152%.

Speaking to Investing.com, Yuya Takemura, Founder of Axys Holding, noted that Bitcoin halving events typically lead to the price rising.

“The next halving in 2024 may follow this trend, possibly causing a significant price increase in 2025,” said Takemura. “Considering Bitcoin's past performance and increasing adoption, a significant price increase in 2025 is plausible. Factors such as limited supply, growing institutional interest, and wider acceptance in payment systems play a role.”

Takemura also recognized that the global recognition through ETF approvals, Gen Z's growing participation, and blockchain adoption by authoritative entities could impact the price. However, he cautioned that the Bitcoin market is volatile and susceptible to global economic conditions.