$BTC has been bullish for probably a month or more now and finally was able to beat the All Time Hight (ATH) set in 2021. The new ATH as at the time of writing was $73750.07 which was reached on March 14th, 2024 according to coinmarkercap. A lot of us are of the hope that BTC will be able to cross $80K and reach the $100K we all are anticipating. It is no secret that BTC has a massive market dominance of more than 50% which means that the price changes in btc affects the entire market and almost all the other cryptocurrencies.
One major event that has been tipped to possibly take the price of $BTC to the much awaited $100K is the upcoming Bitcoin Halving. You might be wondering why this is the case? It is because historically, all 3 other btc halving in the past was followed by massive price hikes and as you know, crypto is a market that relies heavily on historical data.
Next BTC halving countdown via coinmarketcap
In this month, on or around the 19th of April 2024 the next bitcoin halving is expected to take place. BTC has a limited supply which the maximum supply of BTC is 21 million. Bitcoin halving is expected to control the rate at which these 21 million btc is introduced via mining rewards. As the time of writing, the block rewards is 6.25 BTC which expected to be cut in half to 3.125 BTC after the halving takes place this month.
What some people do not know about btc halving is how much it affects the miners. Currently, mining cost is about $40k - $49K according to cointelegraph. After btc halving, the mining costs doubles. It is expected that the cost of mining will double to about $80K after the halving. This implies that for miners to benefit, the price of BTC at that time would have to be at least 80K.
BTC mining temporary ban in Paraguay
Miners in Paraguay may have to give up mining for at least some time while finding other ways to contribute to the crypto space since a bill has made proposed to ban BTC mining in Paraguay. When this bill was drafted, the reason given was that BTC mining is done illegally by some miners which is disrupting the power supply in Paraguay. The proposed bill will ban BTC mining for 180 days until it is regulated. Whether this bill becomes law or not and how much it will affect the general crypto market, we wait to see.
Relying on historical data and how much the crypto market anticipates the halving event, it is not expected to be much trouble for BTC to get past 80K post halving. So, buckle up and prepare your crypto wallets for the halving event and a potential bumper wallet.
Before the time for the halving four years ago, the price of BTC was about $68K which rose significantly to about $89K at the time of the halving. Post halving, the price continued to increase which is why most of us believe something similar will happen this year though in crypto nothing can be 100% predicted.
This is my response to day 8 of the April InLeo monthly calendar. I encourage you to join.