Bitcoin’s mining difficulty has reached an all-time high, generating excitement for the upcoming halving event. Analysts and market data indicate the potential for Bitcoin to reach $100,000 during the halving period.
As previously noted, Bitcoin miners are preparing for the halving event scheduled for April, despite mixed signals from BTC. On March 14, Bitcoin’s mining difficulty reached a historic high of 83.95 trillion hashes, a 5.8% increase from February’s 79.35 trillion. This increase in mining challenge coincided with Bitcoin reaching a new peak price of $73,835.
Market dynamics and predictions suggest that Bitcoin has retracted by over 10% from its peak, signaling declining interest in emerging spot Bitcoin ETFs. JPMorgan analysts, including Nikolaos Panigirtzoglou, observed a decrease in ETF inflows and an increase in futures open interest on CME, indicating a bearish outlook. They suggest that reduced ETF inflows, combined with the upcoming halving, may lead to more profit-taking and price adjustments.
The halving event, according to Forbes, will reduce the new bitcoin supply entering the market. Historical halving events have typically increased trade volume and demand. With a total limit of 21 million bitcoins, the reward for validating a block halves periodically. The next halving, estimated for May 2024, is a significant event that is expected to have a significant impact on Bitcoin’s valuation and mining mechanics.
The crypto community eagerly awaits the mid-April Bitcoin halving, which will halve miners’ block rewards. Past halvings have resulted in substantial price increases, a trend that many anticipate will continue. On March 11, Bitcoin surpassed $71,000 for the first time, 37 days before the halving that will reduce block rewards from 6.25 BTC to 3.125 BTC. Futures data suggest high expectations for Bitcoin to reach the $100,000 mark by May, after the halving. Basile Maire commented in an interview that options data indicate expectations of Bitcoin prices ranging between $80,000 and $100,000 by May.
Currently, Bitcoin’s price is at $67,169, with a 4.66% increase in the last 24 hours and a 1.49% increase over the week, as shown in the following price chart. The record-breaking surge in Bitcoin’s mining difficulty, along with the excitement surrounding the halving, has created a fervent atmosphere among investors and enthusiasts, all looking towards the $100,000 mark as a potential milestone in Bitcoin’s ongoing journey.