On April 19, the anticipated Bitcoin halving took place, leading to a decrease in the production rate of new Bitcoins. This event occurs approximately every four years and reduces mining rewards by half. The change became effective at around 8:10 p.m. New York time, with the block height reaching 840,000 according to data from sources like mempool.space and Blockchain.com. Following the halving, Bitcoin’s price remained fairly steady, staying close to $64,000.
Bitcoin Halving And Price Action
After the successful Bitcoin halving 4.0, the reward for mining a new bitcoin per day is now reduced to 450 from the previous 900. This decrease in newly mined Bitcoins entering the market is anticipated by analysts to fuel a price increase due to heightened demand. Furthermore, the growing interest in Bitcoin ETFs is set to intensify this upward trend. Notably, advocates for Bitcoin such as Wyoming Senator Cynthia Lummis have expressed approval over this development.
Happy Halving!
“Bitcoin’s unique mechanism called ‘Halving’ contributes to scarcity and increases its worth, similar to how gold’s limited supply enhances its value.”
So, what exactly is the Halving? And, why is today’s extra special?
— Senator Cynthia Lummis (@SenLummis) April 19, 2024
Yet, major banks such as JPMorgan and Deutsche Bank hold the opinion that the impact of Bitcoin’s halving event has already been reflected in its current price. Kok Kee Chong, CEO of Singapore-based AsiaNext – a digital asset exchange catering to institutional investors – shared this perspective.
Based on prior knowledge, the price response to the halving was predictable with minimal fluctuation. The upcoming period will determine if a rally emerges, fueled by continuous institutional investment.
Bitcoín’s positive outlook for the near future might encounter obstacles because of larger economic issues. The Federal Reserve hinted at halting rate reductions, which could affect Bitcoin. Additionally, the Middle East tension is intensifying.
The Bitcoin halving could greatly influence the earnings of mining companies instead of directly affecting the value of the cryptocurrency itself. With this update, approximately billions of dollars in yearly revenue for miners are at risk of being eliminated. However, if Bitcoin’s price continues to rise, the impact might be less severe.
BTC Price Rally Ahead?
The Bitcoin price might experience downward pressure from sellers for several weeks. A significant number of these sellers are likely to be Bitcoin miners, who may offload their BTC as a response to decreased revenues following the halving event.
While the cost of Bitcoin has experienced a significant surge of 65% so far in 2023 following the introduction of spot Bitcoin ETFs, there may be short-term market fluctuations. Nonetheless, long-term investors can still consider buying at lower prices. Bitcoin’s historical trends suggest that its bull market peaks typically occur between 518 and 546 days after the Halving. Consequently, the next potential peak for Bitcoin could emerge around September or October 2024.
#BTC
When Could Bitcoin Peak In This Bull Market?
Historically, Bitcoin has peaked in its Bull Market 518-546 days after the Halving (Chart 1)
This is how typical Bitcoin Halving Cycles have progressed
So if history repeats…
Next Bull Market peak may occur 518-546 days…
— Rekt Capital (@rektcapital) April 19, 2024
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