Should You Invest in the Bitcoin Halving Event in April 2024?
Bitcoin's price went up from $42,000 in January to $72,000 by March 12, hitting a new all-time high (ATH). Just a week after reaching $70,000, which was higher than the record set in 2021 at $68,729. Meanwhile, the U.S. Federal Reserve decided to keep interest rates unchanged during its March 19-20 meeting, but there may be rate cuts later in 2024.
Two main things are causing bitcoin's price to go up and drawing people back to investing in cryptocurrencies.
Firstly, the U.S. Securities and Exchange Commission (SEC) approved 11 new bitcoin exchange-traded funds (ETFs) in January. These ETFs let people invest in bitcoin without actually owning it. MicroStrategy CEO, Michael Saylor, says this meets ten years of demand from people wanting to invest in bitcoin.
This has made people more confident about bitcoin and more people are investing in it. Over $2 billion is being invested in bitcoin ETFs every day.
The second thing is the Bitcoin Halving event, expected in mid-April. This is when the amount of new bitcoin created by mining is cut in half. Historically, when this happens, the price of bitcoin goes up.
People are excited because there's less bitcoin being created, and more people want to buy it. This is making the price go up even more.
Bitcoin has always gone up in price after a halving event, but this time it's happening even before the halving. This has never happened before.
Some people think the price of bitcoin will go over $100,000 before halving. This is because lots of people are investing in it now.
Bitcoin has been the best investment since the year 2000. On average, people who invested in it have made 148.9% profit every year.
Bitcoin mining might become less profitable after the halving, but the price of bitcoin will probably go up, so it will balance out.
Overall, the halving event will have a big impact on bitcoin's price this year and in the future.