Bitcoin’s 33% Surge Post-2024 Halving Amid Institutional Influence

Since the 2024 Bitcoin halving, BTC has increased by 33%, with predictions of accelerated market cycles due to rising institutional investments. The halving reduced block rewards, impacting BTC scarcity. Institutional adoption, particularly by ETFs, is believed to influence a shorter market response time, potentially leading Bitcoin to new heights within a shorter timeframe than previous cycles.

Bitcoin has seen a notable 33% increase since the 2024 halving, highlighting its strength in a challenging global economic climate. This event, which occurred in April 2024, halved the block rewards from 6.25 BTC to 3.125 BTC, consequently reducing the supply of new Bitcoin entering the market. Market analyst Enmanuel Cardozo explains that despite BTC’s growth, concerns regarding economic uncertainty and previous experiences are keeping many investors cautious, awaiting a clearer signal to buy into the market.

Cardozo further predicts that institutional investments from major firms such as Strategy and Tether could expedite Bitcoin’s market cycles traditionally observed every four years. He anticipates that the next peak could occur sooner than expected, potentially by mid-2026, due to a more mature market with increased liquidity. However, he cautions that Bitcoin’s price movements remain closely linked to overarching monetary policies, particularly anticipating potential rate cuts by the US Federal Reserve.

The automatic halving mechanism of Bitcoin ensures its scarcity, a fundamental aspect that contributes to BTC’s perceived value. Vugar Usi Zade, COO at Bitget exchange, suggests that the adoption of Bitcoin ETFs by institutions may further compress traditional market cycles. This convergence of increased scarcity and institutional investment could place Bitcoin on a trajectory to challenge its all-time high, particularly if it surpasses the critical $90,000 threshold in the upcoming weeks.

The recent surge saw Bitcoin reach over $109,000 on January 20, a significant milestone just 273 days post-halving. This rapid ascension contrasts sharply with the longer durations noted after previous halvings—546 days for the 2021 halving and 518 days for the 2017 event. These comparisons highlight a potentially accelerated market cycle spurred by current institutional dynamics and investor behaviour.