It appears that there are roughly 60 days left until the anticipated halving event of Bitcoin (BTC) in April 2024. In the cryptocurrency market, some believe that a significant supply shock could occur before this process. A shock specific to Bitcoin could profoundly affect its value and adoption in the crypto world. A decrease in supply, especially when combined with increased demand from institutional investors, could open the door to a scarcity.
Bitcoin Halving and Supply Situation
The founder of Pomp Investments, Anthony Pompliano, pointed to an inevitable “supply shock wave” that is expected to emerge following the Bitcoin halving, in an interview with Fox Business Exclusive. According to Pompliano, this supply shock could trigger an incredible price increase in Bitcoin prices by the end of this year, following the halving.
He also stated,
We are currently at the $52,000 level. If this continues, we have a chance to approach the all-time high ($69,000) when the halving occurs, and this will be an unprecedented event.
Impact of Bitcoin ETFs on Price
The logic behind the famous prediction is based on fundamental supply and demand dynamics. As miners’ profitability per Bitcoin increases day by day, they will need to sell less BTC, which is expected to lead to a price increase due to the reduction in net BTC supply.
After the approval of spot Bitcoin ETFs by the SEC, significant changes in Bitcoin’s supply were also observed. While companies like BlackRock have indicated they are rapidly accumulating ETF Bitcoin, they also emphasized that companies have purchased over $4.3 billion worth of BTC in a very short time.
Pompliano also highlighted the potential emergence of new types of investors in the crypto market in the coming period. He responded to a question as follows:
Bitcoin is now the favorite asset of all Wall Street investors. Through Bitcoin ETFs, they can now allocate their capital to one of the best-performing assets of the last 15 years.
However, despite the potential for significant price increases, the maturity of the cryptocurrency market and increased regulatory and institutional participation could lead to a more moderate price response compared to previous halving events. Nevertheless, this does not diminish Pompliano’s confidence in Bitcoin. Commenting on the price, Pompliano said:
Historically, Bitcoin prices have shown a 100 percent increase. I wouldn’t be surprised if Bitcoin exceeds $100,000 in the next 18 months.
