Miners, in particular, are uncertain about the halving’s consequences. Lowered rewards and increased energy costs may lead to decreased profitability and even force some miners out of the market. However, the restricted supply of Bitcoin and the potential for a surge in its value could offset these losses. In fact, following the 2020 halving, Bitcoin’s market value nearly quadrupled despite the halved rewards for miners.
Optimistic predictions about Bitcoin’s future abound, with some industry leaders speculating that the halving could push its value to unprecedented heights. Jan3 CEO Samson Mow and network analyst Willy Woo predict that Bitcoin will never drop below $30,000 and could potentially exceed $1 million by 2025. On the other hand, MicroStrategy founder Michael Saylor takes a more cautious stance, acknowledging the possibility of Bitcoin’s value reaching zero, but also recognizing the potential for it to become a significant institutional asset.
Meanwhile, Raoul Pal, former Goldman Sachs top manager and CEO of Real Vision, believes that the ongoing consolidation of assets in Bitcoin could lead to a significant price increase. However, he emphasizes that the future movement of Bitcoin’s price depends heavily on market uncertainty, investor sentiment, and broader economic factors.
Given the expected volatility surrounding the halving, experts recommend that aggressive investors exercise caution and diversify their investments over time. Meanwhile, long-term holders of Bitcoin may opt for a more passive approach. Ultimately, the gains or losses experienced by the crypto community will depend on the interplay between market expectations and investor confidence.