Bitcoin price rises 33% since 2024 halving with institutional impact
Bitcoin (CRYPTO:BTC) has increased by more than 33 percent since its halving event in April 2024 despite ongoing global economic tensions.
The 2024 halving reduced Bitcoin’s block rewards from 6.25 BTC to 3.125 BTC, effectively cutting new Bitcoin issuance in half.
This event is designed to maintain Bitcoin’s scarcity, a key monetary feature of the network.
Market analyst Enmanuel Cardozo from asset tokenisation platform Brickken noted that economic uncertainty and selling pressure have kept some investors cautious.
“Even though Bitcoin’s showing resilience, I think the mix of past experiences, economic uncertainty, and this selling pressure is keeping investors on the sidelines, waiting for a stronger green light before they jump in,” he said.
Cardozo also suggested that institutional investment from firms like Strategy and Tether could accelerate Bitcoin’s traditional four-year halving cycle.
“For the 2024 halving in May, that puts the bottom around Q3 this year and a peak mid-2026, but I think we might see things move it a bit sooner because the market’s more mature now with more liquidity,” he projected.
The trajectory of Bitcoin remains influenced by broader monetary policies.
Cardozo mentioned that a potential US Federal Reserve rate cut in May or June could inject more liquidity into the system and potentially boost Bitcoin’s price.
Institutional adoption and Bitcoin exchange-traded funds (ETFs) are also believed to be contributing to a faster market cycle.
Vugar Usi Zade, chief operating officer at Bitget exchange, said that continued institutional buying combined with Bitcoin’s rising scarcity may accelerate its rise to new highs.
“With growing scarcity triggered by the halving, Bitcoin will likely retest its all-time high if it breaches the $90,000 mark in the coming weeks,” he stated.
Bitcoin reached a new all-time high above $109,000 on January 20, 273 days after the 2024 halving.
This is a faster timeline compared to 546 days after the 2021 halving and 518 days after the 2017 halving, according to data shared by crypto trader Jelle.
At the time of reporting, the Bitcoin (BTC) price was $87,425.37.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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