Bitcoin Anticipated to Hit $70,000 Following 2024 Halving Event

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Bitcoin has surged tremendously during the first two months of 2024, especially since receiving ETF approval this January. It looks like the endorsement will only enhance Bitcoin's recognition in the financial world. With its next halving event set for April 2024, where it is projected to hit an unprecedented value of $70,000– predicted by Toobit (a leading crypto exchange), Bitcoin's price could see dramatic increases that showcase both how we are embracing its' technology as well as the evolving market dynamics.

What Is Bitcoin Halving? 

Bitcoin Halving is an important event in the cryptocurrency network that sees rewards for mining new blocks decreased by 50% – i.e: miners receive 50% less bitcoins for validating transactions as a result of mining new blocks. It typically happens once every four years or 210,000 blocks and helps control inflation by gradually decreasing block rewards. This will continue to happen until all 21 million bitcoins have been issued; each event directly affects how many new coins enter circulation at that moment and may have far reaching effects on their market prices.

How Does Bitcoin Halving Work? 

Halving is an integral component of the Bitcoin network that ensures new bitcoins are mined at an increasing and decreasing pace until all 21 million coins have been mined; which is currenly estimated to happen by the year 2140. About every four years or every 210,000 blocks added to the blockchain, miners' rewards for contributing will be cut in half. Therefore, if the initial reward for mining a block was 50 bitcoins, after its first halving it will now have dropped to 25, and will gradually decrease until reaching 12.5 bitcoins per block mined. The "halving" process reduces the rate at which new bitcoins are created, making them scarcer and increasing their value based on supply and demand principles of economics. Bitcoin's automated halving mechanism serves an integral part of its economic model – as it's meant to emulate the special coins' scarcity while still controlling inflation through restricting supply.

The Purpose of Bitcoin Halving

The Halving Process serves several essential purposes for the Bitcoin ecosystem:

Controlled Supply

Unlike fiat (cash or regular money), which central banks can print in unlimited amounts of, Bitcoin's supply is limited to only 21 million. It also regularly halves to ensure gradual release of new bitcoins and to act as an anti-inflationary asset.

Inflation Guard

Inflation is prone to happen with any currency, which is why halving is vital. Halving helps control inflation by slowing the rate at which new Bitcoins enter circulation. Therefore, its purchasing power will decrease less rapidly.

Price Impact

Although not its primary goal, Bitcoin's price has often experienced noticeable impacts after it undergoes a halving event. Investor interest often increases significantly following such an event and subsequent supply reduction.

The Advantages of Bitcoin Halving

Bitcoin halving is essential to Bitcoin's value proposition, particularly by increasing scarcity – one of its defining characteristics as "digital gold". As rewards for mining new blocks decrease by half, so does the rate at which new bitcoins are produced. This mirrors the extraction curve for precious resources, which become harder and costlier to mine over time. Built-in scarcity can bolster the long-term value retention of an asset and act as a hedge against inflation for investors. Halvings may also generate renewed enthusiasm and investment in Bitcoin, as the decreased supply against static or increasing demand can drive up its price, creating media attention and drawing in newcomers to join the market. By gradually decreasing block rewards, Bitcoin encourages miners to increase efficiency or maintain current efficiency levels and stay ahead of technological innovations within the mining industry. These elements contribute to Bitcoin's deflationary nature, strengthen its issuance/distribution model, and uphold decentralized values by aligning incentives across its network.

Will BTC Go up after Halving?

Bitcoin (BTC) price prediction after an halving event has become the subject of much discussion within the crypto community. Bitcoin prices have historically seen significant spikes following previous halving events, likely as a result of reduced supply vs. steady or increased demand. This move reduces the rate at which new coins are created, effectively slowing the inflation rate of Bitcoin's total supply. As more coins become scarcer over time, demand may increase and drive up price. It is important to note that cryptocurrency markets can be affected by numerous external forces beyond just halving events. This includes phenomenas such as regulatory news and market sentiment analysis, technological advancements and regulatory news to regulatory news itself. While past results may show a positive reaction after each halving event has taken place historically, their effects can differ depending on prevailing market conditions or external influences at each particular halving event.

Where to Buy Bitcoin This Year?

You can buy Bitcoin on many cryptocurrency exchanges. Make sure to choose one that suits you, as each platform offers various functions. You could also buy it on Toobit, a rising cryptocurrency platform with thousands of new users. Curious about how to trade on Toobit? Check out our video below https://www.youtube.com/watch?v=o9ju_ZpRf8I for more information. 

What Tokens Will Be More Popular After Bitcoin Halving?

Following a Bitcoin halving event, other cryptocurrencies and tokens may also gain significant traction. Ethereum (ETH USDT), the currency which powers Ethereum network is one potential candidate for this.  Another few examples would include Chainlink (LINK USDT), a decentralized oracle network designed to connect smart contracts with real-world data, payments, and resources; and Ripple Labs uses Ripple (XRP USDT) cryptocurrency/token as part of their platform for transactions on their network. XRP was designed to facilitate international financial transfers and the exchange of multiple currencies, while investors often use it to store value and profit from price fluctuations. Decentralized finance (DeFi) platforms could become increasingly popular as their yield-generating capabilities and the general trend towards open finance grows in prominence. But as with any trading opportunity, it's always wise to conduct thorough research prior to making any investment decisions.

About Toobit

Toobit, a leading global digital trading platform built by former core members of Huobi and the former executive of Bybit, aims to enable users to trade high-quality financial assets freely and equally across the globe. With thousands of satisfied users, Toobit offers exceptional connection speeds and a steadfast commitment to privacy.