Bitcoin Soars 25% in 2023, Halving Event to Boost Demand in 2024
• In the year 2023, Bitcoin has had a productive beginning to the year, with its value increasing by more than 25 percent.
• The rally was mainly due to the Federal Reserve (Fed) potentially suspending its rate rises, as inflation climbed only a little in December 2022.
• Bitcoin is also expected to benefit from its upcoming “halving event” in 2024, as the miner rewards will be halved and supply decreases.
It’s been a prosperous start to the year for Bitcoin, the world’s most valuable cryptocurrency. Since the start of 2023, its value has risen by an impressive 25%. This surge was primarily driven by the Federal Reserve (Fed) potentially suspending its rate rises, as inflation had only increased slightly the previous month. Moreover, the cryptocurrency is expected to benefit from its upcoming “halving event” in 2024, which will see miner rewards halved, resulting in a decrease in supply.
The rally, which occurred against the backdrop of a bearish market sentiment, took many by surprise. Bitcoin was able to break past the $21,175 barrier as of the writing of this article, and the asset’s institutionalization and a series of Fed moves last year may have contributed to the crypto market’s growth.
The halving event, which takes place every four years, is expected to provide a boost to demand. This is because, with the rewards halved, the supply of Bitcoin decreases, leading to an increase in value. In addition, the halving event could spark more interest in Bitcoin from institutional investors, which would further drive up its price.
The halving event is scheduled for 2024, but the positive sentiment for Bitcoin is already evident. If the cryptocurrency can remain resilient and continue to show signs of growth, it could be in for a strong week ahead.