Bitcoin price could surge to $148,000 after halving event in 2024

The price of Bitcoin may significantly increase and reach $148,000 after the impending halving event expected for next year, according to Pantera Capital, a crypto venture fund.

They rely on a crucial indicator known as the stock-to-flow ratio to make this prediction. Pantera claims that this ratio may cause Bitcoin’s price to increase to $35,000 prior to the halving event and then to $148,000 afterwards.

The stock-to-flow ratio calculates the difference between the market’s current supply of Bitcoin and the supply that is currently being added. A higher stock-to-flow ratio denotes a more scarce asset, which could lead to an increase in price. Currently, the price of one bitcoin is almost $26,500.

Historically, Bitcoin halving events have been associated with significant increases in its price due to their impact on the stock-to-flow ratio. These halving events are pre-programmed occurrences that happen approximately every four years, cutting the number of new Bitcoins entering circulation in half.

The 2024 halving is expected to reduce the per-block reward from 6.25 bitcoins to 3.125 bitcoins. Such substantial reductions in the rate of new supply entering the market lead to a higher stock-to-flow ratio, effectively increasing the scarcity of Bitcoin and potentially driving up its price.

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Pantera Capital stated, “The 2020 halving reduced the supply of new Bitcoins by 43% relative to the previous halving. It had a 23% as big an impact on price.”

He added, “The next halving is expected to occur on April 20, 2024. Since most Bitcoins are now in circulation, each halving will be almost exactly half as big a reduction in new supply. If history were to repeat itself, the next halving would see bitcoin rise to $35k before the halving and $148k after.”

The forthcoming Bitcoin halving, together with the recent XRP decision and BlackRock’s proposal for a Bitcoin ETF, according to Pantera Capital, presents a positive setting for the following bull market in digital assets.

According to the company, “Our view is that we’ve seen enough—there’s just so long markets can be down. We would then see a rally into early 2024 and then a strong rally after the actual halving.”