Bitcoin Halving 2028: 5 Crucial Trends and Predictions to Watch; Bitwise Report

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As Bitcoin miners adapt to reduced rewards post-halving, experts like Bitwise’s Chief Investment Officer, Matt Hougan, offer insights into the future. With the next halving projected for 2028, Hougan has outlined five key predictions, shedding light on Bitcoin’s trajectory.

Hougan anticipates a 50% reduction in Bitcoin’s volatility, attributing it to the entry of institutional investors via ETFs. The CIO believes that this increased institutional participation is expected to bring more stability by rebalancing portfolios and making steady investments, thus dampening price swings.

He notes, “ETFs bring new types of investors into the Bitcoin market—financial advisors, family offices, institutions, etc. These investors act differently than the retail investors who have dominated Bitcoin to this point.” 

Expectations suggest that Bitcoin allocations in target-date portfolios could reach 5% or more. Hougan states, “As a result, I suspect we’ll see the ‘typical’ portfolio allocation rise to the point where it is considered normal to have 5% or more of your portfolio in Bitcoin.” As such, the growing acceptance can lead to more widespread adoption across various investment platforms.

Hougan predicts, “In the U.S., Bitcoin ETFs have pulled in ~$12.5 billion in net flows since launching three months ago. That makes them the fastest-growing new ETF category of all time.”

Bitcoin ETFs have already garnered significant inflows, but Hougan foresees this trend accelerating.  With more investors discovering ETFs and financial institutions joining the trend, substantial long-term demand is anticipated.

Hougan speculates that central banks, attracted by Bitcoin’s properties as non-debt money and its utility in a geopolitically tense world, may start allocating reserves to Bitcoin. He suggests that central banks could view Bitcoin as a hedge against geopolitical risks, indicating a significant shift in global finance.

With Bitcoin’s growing mainstream acceptance and institutional backing, Hougan predicts a price surge, potentially exceeding $250,000 per Bitcoin by 2028. He believes that the asset will continue to move further into the mainstream as more institutions and investors embrace it. 

“With the ETFs launched and gathering assets—and major Wall Street firms lining up behind Bitcoin—I suspect the asset will continue to move further into the mainstream,” Hougan states.

Industry experts echo Hougan’s sentiments, anticipating substantial price increases driven by institutional adoption and broader acceptance. 

Pav Hundal predicts a 100% price increase, while Henrik Andersson envisions prices reaching $200,000 before 2028. This bullish outlook is supported by the ongoing institutional interest and growing market presence.

As Bitcoin miners navigate reduced rewards, predictions for the next halving offer valuable insights into Bitcoin’s future trajectory. 

With institutional interest on the rise and Bitcoin’s role evolving, the next halving could mark a significant milestone in Bitcoin’s journey toward mainstream acceptance and adoption.