Bitwise Asset Management expresses confidence in bitcoin’s long-term prospects, considering it to be in a strong upward trend. The company’s CEO foresees the upcoming bitcoin halving as having a substantial impact, potentially the most influential to date.

 For those who are unfamiliar, Bitcoin halving is a critical event in the Bitcoin network where the reward for mining new blocks is reduced by 50% approximately every four years. This process is built into Bitcoin’s design and occurs after every 210,000 blocks are added to the blockchain. The reward reduction during halving events has progressively lowered the reward per block from 50 bitcoins to 6.25 bitcoins, which subsequently limits the amount as the demand rises, thus causing its value to remain stable and grow. This prosses has been tested and has remained true to the concept since 2012, but is not intended to  go on infinitely.

The scheduled occurrence of Bitcoin halving events is expected to continue until the total supply cap of 21 million bitcoins is reached, which is estimated to be around the year 2140. The gradual reduction in mining rewards through halving events helps control the supply of new bitcoins entering circulation, contributing to the scarcity of the cryptocurrency. This scarcity is a key factor in determining the value of Bitcoin as a deflationary asset. However, reduced mining rewards can also have implications for miners who may need to adapt their strategies to maintain profitability. Overall, Bitcoin halving plays a crucial role in Bitcoin’s economic model and contributes to its integrity, security, and value proposition.

The upcoming halving event, reducing the rewoard per block from 6.25 to 3.125, is expected to raise the currency’s value from the current price of around 66,000$ to 100,000$ the greatest value hike in its history. 

Looking ahead, the CEO of Bitwise anticipates the forthcoming bitcoin halving event in April 2024 to be particularly significant, given the substantial supply reduction in dollar terms compared to previous halvings, coinciding with a period of rising demand for the cryptocurrency.