We don’t have to explain that the price of Bitcoin is currently doing very well. After all, you are bombarded with messages about the Cryptocurrency. From unprecedented heights well above 300,000 dollars to reports from the European Central Bank (ECB) that Bitcoin has no value at all and is nothing more than inflated air. It is usually ‘the experts’ who speak. Those who dare to make seemingly strong predictions based on past statistics, assumptions, US banks and interest rates.
Should you listen to them or is their knowledge based too much or arbitrary assumptions. If there were certainties it would all be very easy. Then Bitcoin would be a scarcity product and its owners would all go through life happy and rich. But nothing is worth less. The price of Bitcoin is as erratic as the weather. Although you also have satellite images or rural experts aka farmers who explain to you in detail from the clouds and the wind that better weather is on the way.
Miners, Bitcoin halving and experts
Bitcoin miners are essential to the existence of the cryptocurrency, as they are the security guards of the Bitcoin network and use their powerful computers to verify transactions and add new blocks to the blockchain. This keeps the system reliable and prevents fraud. As a reward, they receive new bitcoins, which stimulates and maintains the network. Their role is crucial to the integrity and survival of Bitcoin.
But then there is the upcoming (now 4th) Bitcoin halving, a key moment that halves the reward for mining Bitcoin and could dramatically change the financial prospects of miners. This event will not only reduce miners’ profits but also affect Bitcoin’s price. After the halving, only half the number of new Bitcoins will be released. At the moment there are 900 Bitcoins per day, but after the halving it will only be 450 Bitcoins per day.
So there is an exciting time in the air for miners and for all Bitcoin owners. The question is, depending on the price development, whether all those miners can survive this halving. Until then, however, the Bitcoin network benefits from the prosperity of miners who are essential to its security and stability.
This Bitcoin halving takes place approximately every four years. This year it is expected around April 20, but the final date and time can never be predicted exactly. You can say that the upcoming halving is one of the few certainties. It is coming at great speed and much of what is happening now has to do with that.
What do the Bitcoin experts predict?
It is a delight for experts, they all predict a beautiful summer with lots of sun and wonderful temperatures without a day of rain or there are also those who predict rain, thunder and even severe weather. Who should you listen to or is that famous coffee grounds and a lot of emotion reigning here?
What is certain is that the halving significantly limits the new supply of bitcoins. That could push up the price if demand remains the same or grows. Unlike fiat money, which can be printed infinitely, each halving increases the scarcity of bitcoin. That built-in scarcity could strengthen bitcoin’s long-term value.
A rate of $70,000 is very realistic
The Bitcoin price is now hovering around $70,000. We have thus left the zone of the deep value of the currency behind us. One of the experts is Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments. He believes that Bitcoin is now fairly priced at around $70,000, based on the energy used by miners. This is an important moment that has not happened since the end of 2020, where the price corresponds to the intrinsic energy value of the network. According to Charles, Bitcoin’s deep value has disappeared. Ultimately, everyone had 2 years to pick up undervalued Bitcoin. Too late because we have now started a new and exciting chapter, is his conclusion.
Not everyone is convinced of a rosy future for Bitcoin’s price
Some are marking the recent record highs as the start of a possible pullback, which in turn runs counter to the idea that growing interest in crypto will push the market further higher. According to on-chain data analytics platform CryptoQuant, Bitcoin and Ether (ETH), the largest altcoin, should surpass their current peaks more clearly. An important factor in this is the impending decision in the US regarding the admission of Ether exchange-traded funds (ETFs).
If BTC and ETH do not reach significant new all-time highs in March, they expect a decline in April and May, ahead of the Bitcoin halving and the potential approval of the ETH ETF. And then March, after a bullish February, could become a very crucial month.
