After much anticipation, the Bitcoin halving event occurred on Friday, April 19, leading to a programmed decrease in the creation rate of new BTCs. This event, which occurs every four years, halves the rewards for miners. The adjustment was implemented at 8:10 p.m. New York time on Friday evening, specifically at block height 840,000, as verified by data from analytics platforms like mempool.space and Blockchain.com. Following the halving, the Bitcoin price remained relatively steady, staying close to the $64,000 threshold.
With the Bitcoin halving 4.0 a success, the daily miner rewards drop to 450 Bitcoin, from 900. As the BTC halving reduces the supply of new Bitcoins in the market, analysts expect it to be a catalyst in order to drive the Bitcoin price higher. On the other hand, the strong demand from spot Bitcoin ETFs will further aid the bullish momentum. Some of the pro-Bitcoin lawmakers like Wyoming Senator Cynthia Lummis has also welcomed the recent development.
However, banking giants like JPMorgan and Deutsche Bank believe that the Bitcoin halving has been already priced in. Kok Kee Chong, chief executive officer of Singapore-based AsiaNext, a digital-asset exchange for institutional investors, said:
“As expected, the halving was fully priced in so price movement was limited. Now the industry will have to wait and see whether a rally will occur in the coming weeks amid sustained institutional interest”.
The current optimism surrounding Bitcoin’s short-term prospects could face challenges due to broader macroeconomic factors, including indications from the Federal Reserve suggesting a pause in interest-rate cuts and escalating tensions in the Middle East.
While the halving event is likely to have a greater impact on Bitcoin mining firms rather than directly affecting the cryptocurrency’s price, it is expected to significantly impact their revenue. This blockchain update will potentially eliminate billions of dollars in annual revenue for miners. However, this effect may be lessened if the price of the cryptocurrency maintains its upward trajectory.
It is very likely that the Bitcoin price could continue to face some selling pressure for a few weeks, typically coming from Bitcoin miners. These miners are likely to sell their BTC holdings in order to compensate for the revenue losses post the halving event.
On the other hand, the BTC price has already given a massive 65% run-up this year so far after the launch of the spot Bitcoin ETFs. Despite the short-term volatility ahead, long-term investors can continue to add on dips. Historically, the Bitcoin price has always peaked in its bull market 518-546 days after the Halving. If this turns out to be true, the next Bitcoin peak would come sometime around September-October 2024.
Kevin Warsh has officially stepped up as the new chair of the U.S. Federal Reserve,…
The U.S. House Committee on Oversight and Government Reform has launched an investigation into insider…
Prediction market giant Polymarket is under fire as it has been the target of a…
Strategy continues to boost its Bitcoin holdings with STRC perpetual preferred shares and MSTR stock.…
Bitget announced the start of its second-year partnership with UNICEF's Game Changers Coalition today. Since…
Binance has vehemently denied The Wall Street Journal's new report that claims the exchange allowed…