As the cryptocurrency industry eagerly awaits the highly anticipated Bitcoin halving event, leading cryptocurrency analyst Willy Woo has made an optimistic prediction that is causing considerable excitement among enthusiasts.
Woo specifically emphasized the potential for a dramatic surge in the price of Bitcoin, using the term “ballistic” to describe the expected trajectory following the halving.
In particular, Bitcoin halving is an essential component of the protocol. This happens approximately every four years and reduces miners’ rewards for validating transactions on the blockchain.
This event will also effectively reduce the rate at which new BTC comes into circulation, increasing the asset’s scarcity and potentially influencing its price dynamics.
Bitcoin will go ‘ballistic’ based on this
Woo’s analysis examines the profound implications of the impending halving, particularly as it relates to Bitcoin’s supply dynamics. The cryptocurrency experiences an annual supply growth rate of 1.7%, which will be halved to 0.85% after the upcoming event.
This decline favors Bitcoin’s supply growth compared to traditional assets such as gold, which boasts an annual supply growth rate of approximately 1.6%.
Moreover, Woo juxtaposes the increasing supply of Bitcoin against the US dollar, which is characterized by a negative growth rate due to inflation.
As USD supply growth trends back towards the standard range of 5% to 10%, Woo expects the price of Bitcoin to surge due to its inherent scarcity and growing awareness as a hedge against inflationary pressures.
Half-life 10 days… #BitcoinAnnual supply growth falls from 1.7% to 0.85%.
The gold value of this bit is 1.6% (gold supply doubles every 44 years).
The USD is currently -1.7% in the fight against inflation.
The normal range is 5-10%, when it comes back BTC goes ballistic. pic.twitter.com/IQNOseFmQB
— Willie Woo (@woonomic) April 9, 2024
Different perspectives on BTC trajectory
While Woo’s optimistic predictions set a tone of optimism about Bitcoin’s future, recent insights from a consumer survey conducted by Deutsche Bank offer a more nuanced view.
The survey results show that there are clear differences among respondents regarding Bitcoin’s trajectory, with about a third expressing a negative view of the price outlook.
These individuals expect the value of Bitcoin to plummet below $20,000 by the end of the year, marking a stark departure from the usual bullish sentiment.
Adding to the discourse, Authur Hayes, co-founder of BitMEX, presents a opposing view characterized by a bearish outlook for Bitcoin’s post-halving performance. In a comprehensive analysis shared through a blog post, Hayes outlined concerns about the potential for significant price declines following the halving.
While many analysts are predicting a bullish rally during the halving period, Hayes envisions a scenario in which Bitcoin experiences a more gradual trajectory, emphasizing the need for careful consideration amid heightened market volatility.
Featured image by Unsplash, chart by TradingView
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Source: NewsBTC.com