With less than a year remaining until bitcoin’s next halving event, there is growing anticipation of a potential rally to new all-time highs. The event, set to occur on April 21, 2024, will mark the addition of the 840,000th block to the bitcoin blockchain. This will result in a halving of the reward rate for miners, reducing it from 6.25 BTC to 3.125 BTC and cutting the inflation rate of the bitcoin supply in half. This halving occurs approximately every four years to ensure that the total bitcoin supply never surpasses 21 million tokens.
Historically, bitcoin halving events in 2016 and 2020 have preceded significant price increases. This has led to excitement and speculation about the potential outcome of the 2024 halving. Matrixport and Standard Chartered have released forecasts projecting bitcoin to exceed $100,000 next year after the halving, while Morgan Creek Capital predicts a rise above $300,000 by the 2028 halving.
To gain further insight into the potential price movement after the 2024 halving, ChatGPT, an artificial intelligence chatbot, was consulted. According to ChatGPT, based on the past pattern of bitcoin halving events, it is reasonable to expect a significant increase in the price post-halving, possibly doubling or tripling the pre-halving price. This could place bitcoin in the range of $60,000 to $90,000. However, the chatbot also emphasized that regulatory changes, technological advancements, macroeconomic trends, and other factors could greatly influence the price.
If bitcoin were to reach ChatGPT’s forecast range, it would represent impressive gains of 2-3 times the current price of just under $30,000. This outperformance is rare among traditional assets. Moreover, ChatGPT’s forecast is relatively conservative compared to other long-term bitcoin pricing models. For instance, the Bitcoin Stock-to-Flow pricing model suggests a fair price of around $55,000 currently, with the potential to rise above $500,000 in the next post-halving market cycle. Similarly, the Bitcoin Rainbow Chart indicates that bitcoin is in a “BUY!” zone after recovering from being oversold.
In the midst of this bitcoin frenzy, a token called BTC20 is gaining attention as a potential alternative to bitcoin. Described as “Bitcoin on Ethereum,” BTC20 offers the opportunity to purchase tokens at the price of $1, replicating the 2011 price of bitcoin. BTC20 runs on an eco-friendly, low-energy Proof-of-Stake Ethereum blockchain instead of the energy-intensive Proof-of-Work chain used by bitcoin. The project aims to raise a maximum of $6.05 million through the sale of BTC20 tokens.
Traders interested in BTC20 need to act quickly, as the project has already raised over $4.25 million within a week. However, it is important to note that cryptocurrency investments carry high risks, and this article does not constitute investment advice. Potential investors should be aware that they could lose all of their capital.