As the crypto space eagerly awaits the highly-anticipated Bitcoin halving event, top crypto analyst Willy Wu has emerged with a bullish prediction that has generated a lot of excitement among enthusiasts.
Wu specifically highlighted the possibility of a dramatic rise in bitcoin’s price, using the term “ballistic” to describe the expected launch post-halving.
Interestingly, Bitcoin’s halving is an integral part of its protocol. This happens approximately every four years and reduces the reward to miners for validating transactions on the blockchain.
This program effectively slows the rate at which new BTC circulates, increasing the scarcity of the asset and potentially affecting its price dynamics.
Bitcoin will go ‘ballistic’ based on this
Wu’s analysis focuses on the profound implications of the impending halving, particularly with respect to Bitcoin’s supply dynamics. The cryptocurrency has an annual supply growth rate of 1.7%, which will halve to 0.85% after the upcoming event.
This decline favors Bitcoin’s supply growth rate compared to traditional assets such as gold, which has an annual supply growth rate of approximately 1.6%.
Furthermore, Wu links the increase in Bitcoin’s supply to the US dollar, which is characterized by a negative growth rate that leads to inflation.
With USD supply growth trending back to the standard range of 5% to 10%, Wu expects Bitcoin’s price to rise significantly, given its inherent scarcity and growing recognition as a hedge against inflationary pressures.
10 days to half… #BitcoinAnnual supply growth fell to 0.85% from 1.7%.
The gold content of this beat is 1.6% (gold supply doubles every 44 years).
USD is currently -1.7% in a fight against inflation.
Normal range is 5-10%, when it comes back, BTC goes ballistic. pic.twitter.com/IQNOseFmQB
— Willy Woo (@woonomic) 9 April 2024
Changing perspective on the BTC path
While Wu’s bullish forecast sets an optimistic tone for the future of Bitcoin, recent insights from a consumer survey conducted by Deutsche Bank present a more nuanced perspective.
The survey findings reveal a clear division among respondents regarding Bitcoin’s trajectory, with approximately one-third expressing negativity about its price potential.
These individuals expect Bitcoin’s value to fall below $20,000 by the end of the year, marking a stark departure from the prevailing bullish sentiment.
Adding to the discourse, BitMEX co-founder, Auther Hayes, offers a dissenting view characterized by a bearish perspective on Bitcoin’s post-halving performance. In a comprehensive analysis shared via a blog post, Hess describes his concerns about the potential for significant price declines after the halving.
While many analysts expect a bullish half-term, Hayes posits a scenario in which bitcoin experiences a more subdued path, emphasizing the need for caution amid heightened market volatility.
Featured image from Unsplash, charts from TradingView