Will Bitcoin Halving Push BTC Market Cap to Over $1 Trillion
Journalist
Posted:
- Demand for BTC could reach a new peak if supply is halved.
- Analysts predicted that Bitcoin could reach the incredible $700,000 mark.
Bitcoin [BTC] Market cap reached $1 trillion for the first time since December 2021. On the same day, the number of coins on exchanges was at its lowest level in six years. AskFX confirmed this after analyzing the green market all week.
Stock market balance declines as market cap reaches $1 trillion.
Data from CoinMarketCap at the time of publication showed that Bitcoin’s total market cap is $1.022 trillion. This is out of the possible $1.94 billion the market could have. This market share suggests that the coin is still very dominant.
We evaluated the Glassnode on-chain data for exchange data. According to our analysis, BTC balances on exchanges totaled 2.41 million BTC in August 2018.
The price of BTC rose from $6,154 to $10,810 less than a month after the balance was so low.
At the time of writing, the balance has fallen to 2.37 BTC.
The decline in the overall exchange balance suggests that market participants are ready to HODL. If the number continues to fall, a new all-time high could be in sight.
Other metrics beyond stock market data also point to a Bitcoin peak in the coming months. The Bitcoin halving is one of them. This year Bitcoin will undergo its fourth halving. The Bitcoin halving was intended to combat inflation by maintaining scarcity.
BTC has therefore reached a new high a few months or even years after each halving as demand increased following the supply cut. It could be the same this time. It’s still a mystery whether the price will be six or seven figures, as some have speculated.
The participation of large institutional investors could also increase the value of Bitcoin. AskFX has reported multiple times that demand for Bitcoin ETFs is growing. The asset manager Grayscale has reduced the number of sales.
BTC will benefit from signs
Cameron Winklevoss has made some comments about it and its influence on price movement. Winklevoss is co-founder of Gemini and stated that demand for BTC is 10 times higher than usual due to ETFs. He said that demand for BTC could increase 20-fold after the halving.
If this is the case, BTC could rise higher and surpass the previous ATH of $69,000. Adam Back, founder of Blockstream and cryptographer, also predicted a BTC price.
Bitcoins: Read Bitcoin Price Predictions [BTC] 2024-2025
Back explained in his post on X that the coin’s market cap could surpass gold’s $13.5 trillion more quickly. Back said that it is not impossible for Bitcoin to reach $700,000.
