Bitcoin's price could have a positive ripple effect on the broader crypto ecosystem: NFTFN

economictimes.indiatimes.com:

Bitcoin reaching record levels $72, 000 on March 11, the cryptocurrency is poised to touch new peaks. According to crypto market research platform Crebaco, Bitcoin is well on track to reach USD100,000-USD150,000 by the end of 2024. As exuberance grows, Abhishek Kumar Gupta, Co-Founder of NFTFN talks about what could drive a bigger rally in Bitcoin and what it means for the broader cryptocurrency market. Edited excerpts:

Economic Times (ET): Bitcoin levels are touching new peak and we now hear about Bitcoin Halving that is expected to drive up value even more. What is Bitcoin halving and why does it matter?

Abhishek Kumar Gupta (AKG): Bitcoin Halving is an event that occurs approximately every four years, where the reward for mining new Bitcoin blocks is halved.

This event is built into the Bitcoin protocol to control the supply of Bitcoin and maintain its scarcity over time. The upcoming 2024 Bitcoin Halving, scheduled for April 2024, will see the mining reward reduced from 6.25 to 3.125 bitcoins per block.
This reduction in the rate of new Bitcoin creation is expected to have a key impact on Bitcoin's supply-demand dynamics. Historically, each halving event has been followed by a price surge, as the reduced rate of new supply entering the market creates scarcity, increasing demand for Bitcoin.

This scarcity effect is similar to that observed in precious metals like gold, which are valued for their scarcity and store-of-value properties.

ET: With the possibility of a US recession aligning with Bitcoin's fourth