Bitcoin Halving 2024: Analysts Forecast a Decline in Bitcoin Dominance and a Potential Increase in Altcoin Engagement

Bitcoin Halving 2024: Analysts Forecast a Decline in Bitcoin Dominance and a Potential Increase in Altcoin Engagement

In the midst of Bitcoin's recent surge to record highs, data indicates a reduction in miner-held Bitcoin, indicating a change in strategy towards profit-taking and operational improvements.

Between April 18 and April 21, Bitcoin will experience its fourth halving phase. There are only ever going to be 21 million Bitcoin tokens. Currently, there are more than 19.6 million BTC tokens in use. In order to slow down the issuance of new BTC tokens at regular intervals, the mystery creator of Bitcoin, Satoshi Nakamoto, incorporated pre-programmed halving to the network. This approximately once-every-four-year occurrence has a lasting effect on the cryptocurrency industry and adjacent businesses. Professionals from India's Web3 community have made an effort to forecast certain anticipated developments that investors might anticipate ahead of the impending period of turbulence before the Bitcoin Halving 2024 event.

Shivam Thakral, CEO of BuyUcoin, said in an interview with Gadgets 360 that historical evidence indicates the halving may trigger important changes in the cryptocurrency industry, such as a decline in the price of Bitcoin and a drop in its market dominance. For other cryptocurrencies, however, this is expected to be a profitable time.

After a halving, there can be brief price corrections or dips for Bitcoin. Based on past cycles, we could see a significant drop in BTC's hegemony along with a rise in interest and funding for altcoins. Up to 12–18 months after the incident, the effects of this halving will still be noticeable, according to Thakral.

Every 210,000 blocks mined on the blockchain automatically triggers the world's most popular cryptocurrency's halving event. Miners are no longer as motivated to mine newer blocks quickly since this procedure halves the BTC incentives they get for validating transactions on the network. As a result, the number of fresh tokens entering circulation decreases. The reward for miners for each block they mine will drop from 6.25 BTC to 3.125 BTC due to the impending halving.

Experts in the market have also identified services that are critical to preserving the security quotient of services pertaining to cryptocurrencies in the future. Manhar Garegrat, Country Head India & Global Partnerships at Liminal Custody Solutions, told Gadgets360, "It's mandatory to acknowledge that custody organizations play a crucial role in ensuring the safety and security of digital assets, particularly throughout events that can have amplified price volatility alongside activity, like the Bitcoin halving."

As more investors may soon start investing in cryptocurrencies, Garegrat believes that crypto custodians should use multi-factor authentication, sophisticated encryption techniques, and continuous monitoring systems to protect crypto reserves from cyber risks and unauthorized access. On Thursday, the values of Litecoin, Near Protocol, Elrond, and Iota all increased while those of Bitcoin and Ether decreased. After hitting a new all-time high of $73,000 (approximately Rs. 60.9 lakh), the price of bitcoin is now trading at $61,515 (about Rs. 51.3 lakh).

The market analysts believe that the oldest cryptocurrency will witness a multiplication in value in the long run after the half of its price. Despite the optimistic outlook on the market, it is crucial to recognize the possibility of a decline in Bitcoin prices as a result of macroeconomic uncertainties. We may anticipate Bitcoin rising to a new ATH of around $100,000 (approximately Rs. 83.5 lakh) in 10 to 18 months if the cryptocurrency market follows its historical track record, according to Jyotsna Hirdyani, South Asia Head at Bitget, who spoke with Gadgets360.

In addition, Hirdyani pointed out that the BTC halving will cause a drop in miner-held Bitcoin, indicating a change in approach toward profit-taking and operational improvements in the wake of Bitcoin's recent surge to all-time highs. She said, "Despite this, many expect the bullish trend that preceded the halving to continue, driven by the scarcity narrative that is intrinsic to the design of Bitcoin."