The concept of “halving” in Bitcoin, where mining rewards are halved every four years, has become a crucial factor influencing the cryptocurrency’s value and market dynamics. This event typically leads to a reduction in Bitcoin supply and has historically resulted in price increases shortly after.

Bitcoin recently reached a new all-time high of over $73,000, although it pulled back to above $64,000 over the weekend and is currently trading above $68,000. Year-to-date, Bitcoin has surged more than 61%, and in the last 12 months, it has risen over 152%.

Experts suggest that historical trends indicate Bitcoin tends to rally before, during, and after halving events. Yuya Takemura, Founder of Axys Holding, predicts that the next halving in 2024 may lead to a significant price increase in 2025, citing factors such as limited supply, institutional interest, and wider acceptance in payment systems.

Menno Martens, a crypto specialist at VanEck, also notes historical trends but cautions that significant corrections are possible during these cycles. He highlights the introduction of a Spot Bitcoin ETF in the US market as a crucial factor in this cycle, potentially leading to significant price appreciation if demand remains high.

JMP Securities estimates that Bitcoin’s price could reach $280,000 within the next three years, driven by anticipated Bitcoin ETF inflows. They calculate around $220 billion of incremental flows into Bitcoin ETFs over this period.

Similarly, Bernstein is confident about its $150,000 price target for Bitcoin, expecting institutional flows to drive the breakout post-halving. They anticipate significant inflows of $10 billion in 2024 and an additional $60 billion in 2025.

Overall, while there are optimistic predictions about Bitcoin’s future price trajectory, experts also warn of potential corrections and emphasize the volatile nature of the cryptocurrency market.