- Although the Bitcoin (BTC) price has faced some selling pressure recently, the demand/supply dynamics are completely in its favor.
- Renowned crypto analyst Willy Woo sheds light on the significant gap between new investor demand on the Bitcoin network and the fresh supply.
- With the halving event for Bitcoin’s new supply only 60 days away, Woo emphasizes the importance of this upcoming occurrence.
Bitcoin’s halving event is expected to occur in April; Will Bitcoin price rise? Current expectations!
What Will Be the Next Target for Bitcoin?
Although the Bitcoin (BTC) price has faced some selling pressure recently, the demand/supply dynamics are completely in its favor. Moreover, within the next two months, the supply will decrease by 50% after Bitcoin’s halving, making the situation even more intriguing.
Renowned crypto analyst Willy Woo sheds light on the significant gap between new investor demand on the Bitcoin network and the fresh supply. According to Woo’s analysis, the Bitcoin network is currently witnessing a daily influx of approximately $607 million in new investor demand, while the new supply coming from newly minted coins is a more modest $46 million daily.
With the Bitcoin halving event for new supply only 60 days away, Woo underscores the significance of this upcoming event. To calculate the new demand, Woo observes realized capital changes, representing the cumulative price paid by investors for their BTC holdings. It’s important to note that this method may potentially underestimate actual demand as it doesn’t include off-chain buying/selling activities.
Bitcoin Price Expectations After Halving
As Bitcoin supply continues to decrease and demand keeps rising, it will serve as an upward catalyst for BTC. Commenting on Willy Woo’s tweet, MacronautBTC presents an interesting arithmetic suggesting that the price of BTC could potentially increase fivefold from current levels.
MacronautBTC’s analysis focuses on the consequences of the halving event, and in a scenario where the daily post-halving demand for Bitcoin is estimated at $607 million, surpassing the daily new supply by $23 million, he predicts an additional market value over 250 trading days. MacronautBTC estimates this imbalance would result in an additional market value of $1.46 trillion.
According to MacronautBTC’s calculations, every $1 trillion increase in market value corresponds to a $50,000 increase in Bitcoin’s price. Applying this metric, the estimated additional market value of $1.46 trillion could raise Bitcoin’s price to $123,000.
MacronautBTC also combines Willy Woo’s suggested conservative “multiplier” approach, showing a potential threefold increase in Bitcoin’s value compared to USD inflows. Along with the predicted additional market value, he envisions a total market value of $5.38 trillion within a year, equivalent to Bitcoin’s price reaching $273,000.
