Senior cryptocurrency analyst Nicholas Merten stated that many investors and analysts expect Bitcoin's next halving to trigger a new bull market, but this is not the case. This is a critical statement from analysts!Bitcoin halving process!CryptocurrencySenior analyst Nicholas Merten stated in a recent statement that, unlike many other analysts, he does not believe that halving BTC in 2024 will lead to a significant rebound, as the impact of new supply will not be a sufficient catalyst
Senior cryptocurrency analyst Nicholas Merten stated that many investors and analysts expect Bitcoin's next halving to trigger a new bull market, but this is not the case. This is a critical statement from analysts!
Bitcoin halving process!
CryptocurrencySenior analyst Nicholas Merten stated in a recent statement that, unlike many other analysts, he does not believe that halving BTC in 2024 will lead to a significant rebound, as the impact of new supply will not be a sufficient catalyst. Bitcoin is halved every four years, reducing the mining rewards of Bitcoin by half, thereby reducing the new supply entering the market. The next halving is expected to occur on April 15th. Nicholas Merten stated:
There is a big misunderstanding here. Technically speaking, this halving will reduce the inflation rate by half, but the problem is that I expect the decrease in nominal inflation rate to weaken over time. This also explains why the return on Bitcoin decreases over time. Its expansion speed is not as fast as before.
The next halving will reduce the miners' rewards from approximately 6.25 Bitcoins per block to 3.125 Bitcoins per block. Nicholas Merten doubts whether this decline will lead to significant growth, as it is relatively small compared to the total market value of Bitcoin. The analyst stated that:
This means that the number of Bitcoins minted each year will decrease by 164250, or a decrease of $4.4 billion based on current market prices. This means that the potential selling pressure will decrease by 450 Bitcoins per day, or based on current market exchange rates, the potential selling pressure will decrease by $12 million. This may seem like a lot, and may even open up a new bull market. However, when we compare these numbers with the valuation and size of the Bitcoin market, they seem less optimistic.
Analyst's comments on BTC supply!
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