As the 2024 Bitcoin Halving approaches, anticipation among investors grows for what is considered the most important event in Bitcoin’s history. This excitement is fueled by the historical performance and impact seen after previous halvings. With three halvings already behind us and the fourth coming up, the crypto community is eagerly awaiting the next halving.
The Fourth Bitcoin Halving
The fourth Bitcoin halving is scheduled for April 2024. When this occurs, the supply of new Bitcoin being created reduces to half. Currently, 900 bitcoin are being created every day up. he halving will reduce that number to 450.
This in turn makes bitcoin more rare because of its scarcity mechanism. With a lower supply of bitcoin being created, the demand for buying bitcoin can potentially increase. We have experienced three bitcoin halvings, and after every halving, the price of bitcoin tends to set new records one year after it occurs.
Take a look at the performance of Bitcoin after the halvings: Bitcoin soars after past halvings: Will history repeat in 2024?
The Spot Bitcoin ETF
On January 10th, 2024, the SEC's approval of 11 spot Bitcoin ETFs marked a historic moment for Wall Street. This decision generated significant excitement in the financial landscape, as it enabled traditional investors to enter the crypto space through a familiar investment vehicle, securities.
People who invest in these ETFs are only buying shares of a fund and are not investing in actual bitcoin. The ETFs are managed by large financial institutions that buy Bitcoin for their fund.
Between individual investors seeking real Bitcoin and institutions purchasing Bitcoin for their funds, demand has skyrocketed. Understanding the fundamental economics of “supply and demand”, where do you think the price of Bitcoin will go after the halving?
The Future of Bitcoin Halving
While the final Bitcoin halving won't occur until 2140, with 32 halvings remaining, questions naturally arise about Bitcoin's future trajectory. As Bitcoin approaches its fourth halving, historical trends reveal positive performance for investors following these events. This fuels anticipation and excitement for Bitcoin's continued growth potential.
At iTrustCapital, investors can buy and sell real Bitcoin within a tax-advantaged IRA, benefiting from 24/7 access, low fees, and significant tax advantages.
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