Bitcoin Faces Major Supply Shock in 2023 'Halving' Event, Potentially Fueling Price Volatility and Future Growth
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Bitcoin's supply is reduced by 50% every 4 years in an event called the "halving". The next halving is expected in April 2023.
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Historically, bitcoin's price has increased significantly after each halving event due to reduced supply and steady demand.
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The upcoming halving could lead to market speculation and volatility in bitcoin's price in the short term.
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Over a 5-10 year horizon, the halving events make bitcoin more scarce, which could increase demand and push prices up.
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With recent developments like the approval of spot bitcoin ETFs in the US, demand for bitcoin may start to significantly outpace new supply after the next halving.