Bitcoin (BTC) initiated 2024 with a positive uptick, registering a 3.18% gain in the first week, as per CoinMarketCap data. The cryptocurrency market anticipates a bullish trend, with investors eyeing various asset managers’ imminent approval of BTC spot ETF proposals.
Despite the pending decision from the US Securities and Exchange Commission (SEC), crypto analyst Ali Martinez remains optimistic about Bitcoin’s performance in 2024, citing the upcoming BTC Halving as a key driver for substantial gains.
In a recent X post, Martinez emphasized the positive outlook for Bitcoin’s price in the coming year, irrespective of the ETF developments. He highlighted the historical significance of the BTC Halving, an event occurring every four years that reduces miners’ block rewards by 50%. This scarcity-inducing mechanism historically triggers a surge in BTC prices due to decreased supply and demand.
Bitcoin’s Halving Impact: Historical Events Triggered Substantial Price Surges
Martinez pointed out that past halving events have consistently resulted in significant price increases for BTC. For instance, after the first halving in November 2012, Bitcoin’s price rose from $12 to $1,000 within a year. The second halving in July 2016 saw Bitcoin’s price increase from $670 to an all-time high of $19,700 by December 2017. The third halving in May 2020 propelled Bitcoin’s price from $8,821 to its current all-time high of $68,783 by November 2021.
Given this historical price trajectory, Martinez predicts that Bitcoin investors are well-positioned to profit in the coming months, especially with the next BTC halving scheduled for April 2024. He asserts that these cyclical gains should persist regardless of the SEC’s decision on the BTC spot ETF.
As of the latest update, BTC is trading at $43,665, marking a minor decline of 0.30% in the last 24 hours. Over the past seven days, the leading cryptocurrency has exhibited resilience, recording a notable gain of 4.07%. Despite an impressive yearly performance, with a surge of 159.94%, the daily trading volume has seen a noticeable dip of 22.25%, currently valued at $26.8 billion, amid ongoing market fluctuations.