According to a forecast published by Pantera Capital, a venture capital firm that specializes in cryptocurrencies, the price of Bitcoin will hit $135,000 after the halving, which is slated to occur on May 29, 2024.
In the research, Pantera Capital emphasizes that the halving, which reduces the payment miners earn for verifying transactions by half, is a key event in the history of Bitcoin. This makes it more difficult for miners to make money, which could result in a decrease in the amount of Bitcoin available.
According to Pantera Capital, the price of Bitcoin will rise as a result of a decrease in its supply and an increase in demand. Within three years of the price halving, according to the firm, Bitcoin will cost $135,000.
Not only Pantera Capital, but other companies also anticipate an increase in Bitcoin prices following the halving. Similar predictions have been made by other analysts, and some have even suggested that Bitcoin’s price may rise to $200,000 or more.
It’s crucial to remember that it can be difficult to forecast the exact price of a cryptocurrency. When investing in cryptocurrencies, there is a chance of losing money as their prices can vary greatly. As a result, it’s crucial to only invest in cryptocurrencies with money that you can afford to lose.
Why Pantera Capital Expects Bitcoin to Rise in Price
The belief that Bitcoin’s price will rise following the halving is supported by a number of factors, according to Pantera Capital. These motives consist of:
Bitcoin’s supply is reduced by halving because the reward miners receive for validating transactions is cut in half. This makes it more difficult for miners to make money, which could result in a decrease in the quantity of bitcoin. The price of Bitcoin will rise as a result of the decrease in supply and the rise in demand for cryptocurrencies.
Bitcoin is becoming more and more in demand in a number of ways. For instance, businesses are embracing Bitcoin as a form of payment, and institutional investors are beginning to invest in the cryptocurrency. The price of Bitcoin will rise in tandem with the rise in demand.
Bitcoin’s trend toward universal adoption: Pantera Capital thinks that Bitcoin is headed in that direction. This can cause the price of the cryptocurrency to rise significantly.
Problems with the Bitcoin Price
While there are many reasons to think that the price of Bitcoin would rise following the halving, there are also obstacles that could prevent this from happening. These difficulties include:
Governments are starting to regulate cryptocurrencies all around the world. This might slow down the adoption of Bitcoin, which would cause its price to drop.
Other cryptocurrencies’ competition: The cryptocurrency business is getting more and more cutthroat. As a result, Bitcoin’s market share may decline, which would lower its price.
Conclusion
Accurate cryptocurrency price projections are difficult to come by. However, there are a number of reasons to think that after the halving, the price of Bitcoin would rise. By halving the supply, Bitcoin, there is a chance that the price would rise. Additionally, there are several ways in which the demand for Bitcoin is increasing, which can also cause a price increase.
Regulation and competition from other cryptocurrencies are two issues that could impede the growth of Bitcoin’s price.
