Bitcoin's Big Leap? Research Points To $87K Price Target On This Year's Halving

With Bitcoin’s BTC/USD fourth halving on the horizon in April 2024,  many believe it could significantly influence the cryptocurrency’s value. 

What Happened: A Finder survey, which compiled insights from 31 FinTech specialists, suggests that Bitcoin’s average price could reach about $87,000 following the halving event. 

Bitcoin halving is a scheduled event that cuts the reward for mining new blocks in half, occurring approximately every four years or after 210,000 blocks are mined. This mechanism is designed to control inflation by reducing the rate at which new bitcoins enter circulation. 

Research from CoinGecko has compiled predictions from a number of industry authorities:

• ARK Invest, led by CEO Cathie Wood, predicts a rise in BTC price between $600,000 and $1.5 million by 2030.
• Matrixport's Markus Thielen points to a possible $125,000 value by the end of 2024.
• BitQuant has taken a spread approach, placing the end of 2024 price somewhere between $80,000 to $250,000.
• Layer One X's Matiu Rudolph suggested a surge to $340,000 by 2025.
• Bloomberg Intelligence's Mike McGlone is eyeing $100,000 by 2026.

While not committing to a specific number, Morgan Stanley’s Denny Galindo signals the start of a new bull run post-halving. Bernstein’s Gautam Chhugani is betting on Bitcoin reaching $150,000 by 2025.

The research also notes that over 47% of these industry experts consider Bitcoin undervalued and just 10% viewing it as overpriced.

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Why It Matters:  The Bitcoin halving is a pre-coded event in the Bitcoin protocol that reduces the reward miners receive for validating blockchain transactions, thus controlling the issuance of new Bitcoin and maintaining its scarcity​​.

Initially, in 2009, miners were rewarded with 50 BTC for each block. The first halving in 2012 reduced this to 25 BTC, and subsequent halving in 2016 and 2020 further decreased it to 12.5 and 6.25 Bitcoin, respectively.

The halving constrains the rate at which new Bitcoin is created. This affects the balance between supply and demand. When the supply decreases while demand remains constant or increases, the value of Bitcoin is likely to rise​​.

Price Action: At the time of writing, Bitcoin was trading at $42,251 up 1.52% in the last 24 hours, according to Benzinga Pro. 

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