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The countdown to Bitcoin's (BTC) highly anticipated halving event has begun, and top crypto analyst Willy Woo has made a bold prediction. In a recent tweet, Woo highlighted the significant impact the halving could have on Bitcoin's price, suggesting that the leading coin could go "ballistic" once the event takes place.
Bitcoin halving is a preprogrammed event that occurs approximately every four years, or after every 210,000 blocks are mined. During this event, the reward that miners receive for verifying transactions and adding them to the blockchain is halved. This reduction in mining rewards is designed to control inflation and ensure that the total supply of BTC remains limited to 21 million coins.
Major drop in annual supply growth
According to Woo's analysis, the upcoming halving will lead to a dramatic reduction in Bitcoin's annual supply growth. Currently, the annual supply growth rate stands at 1.7%. However, after the halving, this rate will be cut in half to just 0.85%. To put this into perspective, Woo pointed out that gold's annual supply growth rate is 1.6%, meaning that BTC will soon have a lower supply growth rate than gold.
10 days to the halvening... #Bitcoin's annual supply growth drops from 1.7% to 0.85%.
— Willy Woo (@woonomic) April 9, 2024
This beat's gold's number of 1.6% (gold supply doubles every 44yrs)
USD is -1.7% right now in its fight against inflation.
Normal range is 5-10%, when it reverts, BTC goes ballistic. pic.twitter.com/IQNOseFmQB
Woo also compared Bitcoin's supply growth rate to that of the U.S. dollar (USD), which is currently experiencing a negative growth rate of -1.7% due to inflation. He noted that the normal range for annual supply growth in fiat currencies is between 5% and 10%. When the USD supply growth reverts to this normal range, Woo predicts that Bitcoin's price will go "ballistic."
Market implications
The halving event is widely viewed as a bullish indicator for BTC, as it reduces the rate at which new coins are introduced into circulation. This scarcity is often associated with increased demand and upward pressure on prices. Woo's prediction of Bitcoin going "ballistic" following the halving shows the growing optimism among investors regarding the coin's future price trajectory.
While Woo's prediction is certainly optimistic, other analysts and experts in the space have also expressed bullish sentiment about Bitcoin's prospects post-halving. Many believe that the reduced supply growth, combined with increasing adoption and institutional interest, could propel Bitcoin to new all-time highs in the coming months.