The highly-anticipated Bitcoin Halving event took place over the weekend on April 20. Similar to the FIFA World Cup, this event only occurs once every four years. It was celebrated by various enthusiasts across the globe, with some celebrations sponsored by crypto companies.
Just a day before the event, Bitcoin experienced a surge in its price, going from AU$94,950 to a high of AU$102,000, according to Swyftx. However, on the day of the halving, Bitcoin’s price dropped to AU$99,600, hovering around that value before it gradually rose back to AU$101,000 the next day. At the time of writing, Bitcoin was trading at AU$101,500.
Historically, the price of Bitcoin has dramatically increased weeks or months following the halving. For instance, after the 2020 halving, Bitcoin tripled in value, from US$8,480 (AU$13,100) to US$25,600 (AU$39,780) between mid-May and mid-December.
However, the 2024 Bitcoin Halving has been heavily scrutinized and labeled as “ridiculously hyped,” according to John Hawkins, a Senior Professor of Economics at the University of Canberra. He elaborated that Bitcoin doesn’t pay any interest or dividend, and the only way a person can profit from the digital currency is if they sell it at a higher price than what they initially paid. He also pointed out that Bitcoin has dropped 10% from its record high, further questioning the narrative of Bitcoin being ‘digital gold.’
Despite the comments, some experts seem unfazed by Bitcoin’s short-term price performance following the halving. Josh Gilbert, a crypto market analyst at eToro, stated that Bitcoin’s “slightly muted” post-halving reaction was anticipated. He argued that Bitcoin’s supply had been cut at a time when institutions are purchasing the asset in large quantities. He noted the growing interest in ETFs and the evident supply-demand imbalance. In combination with possible rate cuts and the recent halving, he predicted that Bitcoin could be eyeing a six-figure rate in the next cycle.
