Question #153 ·
How did the April 2024 Bitcoin halving and stronger ETF demand change Bitcoin’s scarcity and price?
- The halving removed all Bitcoin supply indefinitely, creating total scarcity, while ETFs had no impact on price or investor behavior.
- The halving increased mining rewards and oversupplied markets, while ETF demand fell, causing prices to decline sharply after late 2024.
- The April 2024 halving cut supply in half, increasing scarcity, while rising ETF demand boosted buying pressure, driving prices higher. Right answer
- The halving and ETF demand combined caused instant price stability, eliminating volatility permanently and fixing Bitcoin’s value at fixed levels.
Why is this the correct answer?
This is correct because the halving reduced new Bitcoin creation by 50%, reinforcing scarcity, and simultaneously newfound ETF products attracted capital from institutional and retail investors, together lifting price levels.