Following a record-breaking rally in mid-March this year, Bitcoin peaked just above $73,000. But as every other crypto price rise has demonstrated, its value usually dips soon after as investors sell their assets for profits. That’s why it came to no one’s surprise when the coin’s value retreated to just over $60,000 by early July this year.
According to stats from Statista, before the dip, the record high of about $73,027 was the highest value the coin had ever reached. The figure had beaten the previous all-time high of $69,000 for the first time since November 2021. Considering the same currency was valued at just below $45,000 at the start of 2024, that demonstrates the severity of Bitcoin’s volatility.
Despite the recent downward trend, some market analysts have labeled the situation “the perfect storm”. Their reasoning behind this is the promising price surge that this dip could bring, citing the technological advancements and widespread adoption. These factors, coupled with major crypto events such as the Bitcoin halving, create a compelling case for another major bull run.
The Bitcoin Halving and Its Effect on the Coin’s Price
The Bitcoin halving event takes place roughly every four years, making this year the fourth time this event has happened in the currency’s 15-year run. Previously, the halvings have led to record-breaking price increases, with some investors analyzing bitcoin’s price cycles based on this periodic event. But what exactly is Bitcoin halving and why does it have such a major impact on the market?
Unlike most altcoins and traditional currencies, bitcoin’s unique design ensures that the number of tokens that can be produced through mining is fixed. When the halving occurs, it cuts the currency’s production in half, reducing the yield from mining to 50% of the previous amount. By cutting the supply, the halving event ensures Bitcoin maintains its scarcity in the market. If the demand remains the same, the asset’s price inevitably rises.
Previous halvings have seen a sharp increase in the price and volatility of bitcoin, as miners and investors adjust to the production limits. In 2012, the coin’s value rose by 80 times, while in 2016 and 2020, the halving caused a 300% and 600% price increase, respectively. As the price dips, some analysts see this year’s halving as a recovery momentum driver that could lead to a price increase of up to $130,000 and $220,000 by 2025.
Major Technological Advancements and Industry Adoption
As the world becomes more digital, technological advancements have played a significant role in shaping Bitcoin prices. The digital era has fueled the expansion and adoption of the coin in various major industries, increasing its demand and consequently, its price. One major sector that’s responsible for increasing the currency’s accessibility is the online casino industry, which integrates Bitcoin with payment apps and mobile wallets.
How Online Casino Gaming Has Impacted Bitcoin’s Price
Bitcoin brings excitement and innovation into the world of online gaming, enhancing the experience in many ways. For players, it allows fast transactions, low fees, increased anonymity, and global accessibility. Software developers also benefit from Bitcoin, with some integrating their online casino games with Bitcoin’s cryptographic algorithms to offer provably fair titles and ensure complete transparency.
The positive impacts Bitcoin has on online gaming increases its demand among players and casino site investors. But since the currency’s supply remains the same, this, like halving, fuels a price increase. As more and more countries continue to legalize online casino gambling and betting, it’s only safe to assume that based on this metric alone, bitcoin’s price will hit another high very soon.
Though the recovery momentum might be influenced by various factors, as it stands, institutional adoption and halving will kickstart major growth. As the anticipation surrounding significant Bitcoin price rises continues to swell in the crypto market, most investors opt to hold their assets. Don’t get it wrong, a further price decline is still possible, but the lower price could also contribute to reigniting demand, driving the price back towards all-time highs.