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Bitwise CEO Predicts $11 Billion Drop In Bitcoin Supply Post Halving

Over the last week, Bitcoin (BTC)  investors enjoyed much profit as the crypto asset gained 9.34% to trade above $71,000 based on data from CoinMarketCap. Currently, most of the BTC market is highly expectant of the potential large price gains that the current bull cycle could present. 

However, commenting on the immediate future, Bitwise CEO Hunter Horsley has stated that the upcoming halving event – a key part of the bull cycle – could be the most significant in Bitcoin’s trading history as a result of an impending massive decline in the token’s supply.

Bitcoin Price To Impact Supply Reduction And Token Demand – Bitwise CEO

In a post on X on March 29, Hunter Horsley shared that the Bitcoin Halving event slated for April 2024 could have the most profound supply and demand effects recorded ever in the asset’s history. For context, Bitcoin halving is a phenomenon that occurs every four years in which the block reward for BTC miners is reduced by half.

Horsley began his prediction by referencing the last Halving in 2020, during which BTC’s price was ~$9,000. The Bitwise CEO stated that Bitcoin experienced a significant decline in token supply following the Halving effect, to the tune of ~$9 million per day and ~ $3 billion per year.

Considering that Bitcoin’s price currently hovers around $70,000, Horsley believes that the expected supply reduction will likely be at least three times larger in dollars and is estimated to be $32 million per day and $11 billion. 

With a higher Bitcoin price, Horsley predicts that the expected massive decline in Bitcoin’s supply will be accompanied by a greater decrease in natural selling pressure by miners. In addition, the Bitwise CEO notes this development will concise with the current rise in institutional demand.

Generally, all factors highlighted by Hunter Horsley indicate that Bitcoin will likely experience a magnanimous price surge following the Halving event. Earlier in February, the Bitwise boss predicted BTC could attain $250,000 sooner as a result of investor demand driven by the introduction of the Bitcoin spot ETF.

BTC Price Overview

At the time of writing, BTC is exchanging hands at $70,000 with a 0.65% loss on the last day. The widely acclaimed “digital gold” is up now by 10.45% on its monthly chart  following the price correction in February,

Meanwhile, the BTC’s trading volume has declined by 23.16% and is valued at $24.67 billion. With a market of $1.1 trillion, Bitcoin ranks as the largest cryptocurrency in the world.


BTC trading at $69960 on the hourly chart | Source: BTCUSDT chart on Tradingview.com

Featured image from Forbes, chart from Tradingview

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Crypto Fever: Bitcoin Smashes Records, Approaching $73,000 Milestone

Bitcoin has set a new record by surpassing $71,000, solidifying its status as the digital counterpart to gold and overtaking the market capitalization of silver.

Bitcoin A Tad Close To $73K

This achievement, occurring with remarkable frequency since early March, saw Bitcoin registering a new all-time high of $72,750 today, marking a 5% daily increase and an 12% gain over the past week. The cryptocurrency’s consistent climb underlines its relentless ascent in the financial world.

Amid the UK financial regulator’s announcement that it would permit the trading of cryptocurrency-backed securities, the price of Bitcoin surged to a new all-time high of nearly $73,000. The leading cryptocurrency erased its previous peak of nearly $69,000 set in November 2021.

On Monday, the Financial Conduct Authority disclosed that it would not raise any objections to investment exchanges establishing a market segment for cryptoasset-backed exchange traded notes [cETNs], a stock-like financial instrument, on the UK list.

This increase in value also occurs in the few months since the alpha crypto asset surpassed Tesla, Meta, and Berkshire Hathaway, solidifying its status as the eighth-largest asset in terms of market capitalization, which presently stands at a noteworthy $1.4 trillion. Although it is still in the shadow of industry titans such as Microsoft, Apple, and Amazon, Bitcoin’s rise has been nothing short of spectacular.

The FCA said it maintains its stance that cryptoassets are mainly unregulated and “high-risk investments.” and that Investors should anticipate the complete loss of their capital, the regulator said in a statement.

Neil Wilson, chief analyst at the brokerage Finalto, described the FCA’s action regarding the cryptocurrency market as “positive.” In reference to steep price increases, he further stated that “parabolic” market movements tended to conclude with a significant pullback, but “we can no longer be certain with bitcoin,” he pointed out.

Bitcoin ETF Frenzy: Record $2.7-B Weekly Inflows Propel Crypto Markets

The surge in US spot bitcoin ETF inflows remains a key driver of cryptocurrency price dynamics, as reported by CoinShares, with record-breaking weekly inflows of $2.7 billion and a year-to-date total of $10 billion, approaching the 2021 annual record of nearly $11 billion.

Simultaneously, increased leverage in the crypto market has resulted in the most significant price fluctuations in almost a year. Funding rates, reaching their highest levels since January 2021, and record-breaking bitcoin open interest contribute to the heightened volatility in the cryptocurrency space.

Meanwhile, a notable catalyst propelling this bullish upswing is the forthcoming halving of Bitcoin, which NiceHash estimates will take place in around 35 days. This occurrence, which has transpired on three separate occasions prior to this one, involves a decrease in the compensation provided to Bitcoin miners for the processing of newly added blocks on the network.

The incentive will decrease from 6.25 BTC to 2.125 BTC as a result of this fourth halving, further reducing the supply of new coins.

Comparable to the scarcity of gold, this scarcity-driven paradigm has long been regarded as a fundamental component of Bitcoin’s value trajectory. In the same way that the scarcity of gold serves as the foundation for its value, the halving of new Bitcoin supply events strengthens Bitcoin’s allure as a store of value in the digital era.

Featured image from Belle Co/Pexels, chart from TradingView

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Bitcoin Poised To Reclaim $64K, Now Back Halfway To $63,000 – New ATH Coming For March?

In a blazing start to March, the feverish activity of Bitcoin has set it up for its largest monthly increase in almost three years early Thursday. Money pouring into listed bitcoin funds is fueling a huge gain, and bitcoin is now just a stone’s throw away from a record high.

Investor Frenzy As Bitcoin Set To Reclaim $64K

The primary cryptocurrency rose as much as 14% late Wednesday to momentarily reach $64,000 — its first move above $60,000 since November 2021 — before reversing part of the gains.

BTC was trading at $62,540 as of this writing, according to data from Coingecko.

Due to “fear of missing out” on potential price increases, investors are rushing to buy cryptocurrencies, which brings back memories of the crypto bull market that drove the main cryptocurrency asset to a record high of around $69,000 in November 2021.

Since the beginning of the year, the value of bitcoin has more than tripled, recovering from a 64% decline in 2022. That is an incredible recovery from a slew of scandals and bankruptcy that had cast doubt on the sustainability of digital assets.

Meanwhile, the sudden changes in price have been whipsawing both bulls and bears. According to CoinGlass, centralized exchanges had short liquidations of $176 million and long liquidations of $86.1 million over the previous day.

Crypto Rising

After prices crashed during the “crypto winter” of 2022, investors lost interest in spot bitcoin exchange-traded funds. However, this year’s approval and introduction of these funds to the US market has rekindled interest in cryptocurrencies.

According to LSEG statistics, the top 10 spot bitcoin ETFs saw inflows of $420 million on Wednesday alone, the highest amount in nearly two weeks. Voltages increased when the three most well-known, operated by Grayscale, Fidelity, and BlackRock (IBIT.O), ignited a whole new interest.

Ahead of April’s halving event, which occurs every four years and reduces the rate at which tokens are generated by half as well as the prizes paid to miners, more traders have now been flocking to bitcoin.

What The Experts Are Saying

“Bitcoin optimism is fueled by factors like spot BTC ETF inflows, the imminent halving reducing new issuance, and renewed confidence in the crypto asset class, according to Jonathon Miller, managing director at Kraken Australia.”

“When people see these kinds of increases in a short period of time . . . then it just draws in people and Fomo does kick in,” said Timo Lehes, co-founder of blockchain company Swarm.

“It’s just insane.”

“We could see the all-time high being broken any day now,” said Simon Peters, an analyst at trading firm eToro. “The driving force behind it is without a doubt the [bitcoin funds].”

A New ATH This March?

As Bitcoin experiences brief but notable fluctuations, reaching $64,000 before retracing to the $62,000 mark, the cryptocurrency market remains dynamic and full of anticipation. Investors and enthusiasts are closely monitoring the price movements, speculating on the possibility of a new all-time high (ATH) in March.

Featured image from Pexels , chart from TradingView

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Bitcoin Fast Approaching $60,000 As BTC F&G Index Hits ‘Extreme Greed’ – Details

After rising 5% in the last day, Bitcoin (BTC) is now rapidly nearing the coveted $60,000 mark. This is because investor interest in the largest cryptocurrency in the world has reached levels last seen during a 2021 boom, bringing it very close to its all-time high.

Pre-Halving Rally? Bitcoin Nears $60K

The increase in price coincided with a surge in demand as spot bitcoin exchange-traded funds (ETFs) achieved trading volumes of over $3 billion cumulatively on Tuesday. Additionally, other traders cited the anticipated April bitcoin halving as the source of a fresh narrative that spurs a pre-halving increase.

The world’s most sought-after digital asset’s market cap has now reached $1.2 trillion, Coingecko data shows.

Joel Kruger, a market strategist at LMAX Group, stated that the market is “that much more determined to see the level retested and shattered” now that bitcoin is that much closer to retesting its record high.

Due mostly to the euphoria surrounding a number of spot bitcoin exchange-traded funds that began trading in January, bitcoin has increased by as much as 16% this week and 35% so far this year.

Bitcoin reached its highest level since November 2021 when it surpassed $59,000. The objective of the present surge is to see if the price can rise to $68,790, its all-time high. Six months before a stunning crash in 2022, that peak occurred.

According to Coinglass data, futures bets on lower bitcoin prices have taken on $25 million in liquidations since Asian morning hours, which could have contributed to the price rise.

‘Extreme Greed’ For BTC

In the meantime, on Wednesday, the Fear and Greed Index—a sentiment indicator that measures how quickly asset movement deviates from underlying fundamentals—flashed 82, signaling “extreme greed” and hitting its highest level in more than a year.

A scale of 0 to 100 represents the most anxious and 100 is the most greedy on the index. According to the index’s creators, an environment that is hungry is indicative of exuberance and shows the market is due for a correction.

Since the ETFs started trading on January 11, Bitcoin has increased by 24%. The current upward trend in pricing, according to Bitwise Asset Management analyst Ryan Rasmussen, is merely the beginning.

“The demand that ETFs are generating for the spot bitcoin market is substantially greater than the daily production of fresh supply,” he stated.

In the end, Rasmussen stated:

“What we’re witnessing is cryptocurrency kind of rising from the ashes of the 2022 market.”

The volume of bitcoin trades made thus far this quarter has exceeded the totals for each quarter of 2023 for the same period. Major cryptocurrency trading platforms like Coinbase Global (COIN) and Robinhood (HOOD) have benefited greatly from this activity. Between the start of January and now, those stocks have increased by 27% and 31%, respectively.

Featured image from Pexels, chart from TradingView