Invest in Bitcoin now? The crypto experts Philipp Schuld (right), Timo Emden and Hartmut Giesen make their assessment. Getty Images / da-kuk / Rudy Capital / Emden Research / Sutor Bank
The countdown to the next Bitcoin Halving is on. The event is scheduled for April 20, 2024. In the past, halving caused the Bitcoin price to rise.
Business Insider asked experts whether it is worth investing in Bitcoin or other cryptocurrencies now.
Opinions differ. However, experts recommend thorough research and warn against short-term, speculative expectations.
The countdown to the next Bitcoin Halving is underway and is scheduled for April 20, 2024. In the past, the event caused price jumps for the digital currency. Investors are therefore currently wondering whether now would be a good time to get into cryptocurrency. Since the approval of Bitcoin ETFs in the USA, the digital currency has been racing from one high to the next and is currently priced at $66,465.53. Some experts like James Butterfill from Coinshares even expect that the Bitcoin price could break the 100,000 mark this year.
In addition, the so-called altcoins – i.e. cryptocurrencies that were created after Bitcoin – were also able to benefit from the development. This includes Solana, for example, which recorded an increase of around 650 percent over the course of a year.
What is Bitcoin Halving?
To explain Bitcoin Halving, one should start with mining. In Bitcoin mining, “miners” solve mathematical puzzles using special hardware to create a new block in the blockchain. For this, the “miners” are rewarded with newly created Bitcoins and transaction fees. This is the incentive for them to contribute their computing power. The Bitcoin Halving now reduces the reward for mining, which affects the supply. As supply decreases, the value could then increase. So should investors invest in crypto now? Business Insider asked experts about this.
Should investors invest in Bitcoin now?
“Historical trends show that Bitcoin halvings often resulted in price increases, as shown by the jumps after the halvings in 2012, 2016 and 2020. With the upcoming halving, which will halve the reward for miners from 6.25 to 3.125 Bitcoin per block, this trend could continue, as the shortage of supply potentially drives up prices,” says crypto expert Philipp Schuld from robo-advisor Rudy Capital Business Insider.
The supply shortage caused by the halving, together with the continued strong demand for US Bitcoin ETFs, indicates a potential for an increase in the Bitcoin price. Therefore, investing in Bitcoin could be worth considering at the moment.
The Bitcoin price could even fall in the short term.
However, the upcoming halving is a largely predictable event, which is why its effects could already be taken into account in the current price. Hartmut Giesen from Sutor Bank agrees with this assumption: “The ‘speculation driver’ halving is already priced into the current Bitcoin price,” the crypto expert is convinced. Therefore, he does not expect any major impact on the Bitcoin price in the short term. “There is a certain probability that the price will even fall in the short term due to profit-taking, as the main price driver will then disappear,” says Giesen. “Getting into Bitcoin now is not worth it for short-term profit expectations, but with an investment horizon of a few years it is worth it.”