Business News Asia
The bitcoin price rose in a narrow range of 0.27% today (August 3), moving at $22,945.87.
Bitcoin’s positive moves after the Dow fell 402 points on Tuesday (Aug. 2), the day U.S. House of Representatives Speaker Nancy Pelosi arrived in Taiwan.
- The Dow Jones Industrial Average fell 402.23 points, or 1.23%, to close at 32,396.17 points.
- The S&P 500 fell 27.44 points, or 0.67%, to close at 4,091.19.
- The Nasdaq fell 20.22 points, or 0.16%, to close at 12,348.76.
Mark W. Yusko, investor and CEO of Morgan Creek Capital Management, a global investment advisory firm, said Bitcoin is likely to enter the next bull market in 2024 due to growing demand from investors who have been tracking Bitcoin.
He also argues that the current price of major cryptocurrencies like Bitcoin is too low, with a fair value for Yusko being around $30,000.
“Then when going through crypto winter that’s when we will get the next speculation. And it’s expected to happen during the next halving in 2024.”
Previously, the bitcoin price skyrocketed in 2021, reaching $60,000 in April and a record high of nearly $70,000 in November. Since the peak, the asset has changed course and lost more than 50% of its value.
Due to deteriorating macroeconomic conditions and the global financial crisis, BTC fell below $18,000 in June. The second quarter of 2022 was the worst quarter in 10 years.
Halving is an event that happens every day. This reduces the speed of generating new Bitcoins by halving the block reward. Miners currently receive 6.25 Bitcoins per block, and the amount will be reduced to 3.125 Bitcoins by 2024.
This is a very optimistic event and will reduce the rate of production of new coins. At the same time, if demand remains the same or increases, the value of an asset should also increase according to fundamental economic principles.