Bitcoin Surges 33% Post-2024 Halving Amid Institutional Boost

Bitcoin’s price has risen 33% since the 2024 halving, amid institutional investments and economic uncertainties. The halving reduced the block reward, contributing to Bitcoin’s scarcity. Analysts suggest that upcoming monetary policy changes may further impact Bitcoin’s price trajectory, with predictions of a potential price peak sooner due to market maturity and liquidity. The time to reach new all-time highs has notably decreased compared to previous halvings.

Bitcoin has surged 33% since the 2024 halving, prompting celebration among holders who recognise its resilience despite global economic tensions. The halving event cut the block reward from 6.25 BTC to 3.125 BTC, effectively halving new BTC production. According to Cointelegraph Markets Pro, Bitcoin’s price increase comes amidst fears of a trade war, particularly between the US and China.

Enmanuel Cardozo, a market analyst at Brickken, indicated that while Bitcoin exhibits strength, past market behaviours and current economic uncertainties lead many investors to remain cautious. He suggested that institutional investments from companies like Strategy and Tether might influence Bitcoin’s traditional four-year cycle positively, potentially accelerating price movements.

Cardozo also mentioned that Bitcoin’s future trajectory depends heavily on monetary policies, especially pointing to the possibility of rate cuts by the US Federal Reserve in late May or June, which could inject liquidity into the market and drive Bitcoin prices higher.

The Bitcoin halving is a key aspect of its network, ensuring scarcity, a characteristic that underpins its valuation. Vugar Usi Zade, COO of Bitget exchange, posited that institutional investment and Bitcoin ETFs could be shortening the market cycle. He observed that the build-up of scarcity from the halving may allow Bitcoin to challenge its all-time high if it surpasses the $90,000 mark soon.

Bitcoin achieved a new all-time high, exceeding $109,000 on January 20, 2024. This peak was significantly quicker, occurring 273 days post-halving, in contrast to the higher averages of 546 days following the 2021 halving and 518 days after the 2017 one. Such findings indicate an evolving and accelerating market cycle influenced by scalability and institutional engagement.