The 4.0 Bitcoin halving will decrease the daily miners’ rewards from the current 900 BTC to 450.
Expect ongoing Bitcoin price volatility as miners sell their BTCs to offset revenue losses.
Based on historical data, the price of Bitcoin tends to reach its highest point approximately 520 days after the halving event.
Bitcoin successfully concluded its highly anticipated halving event on Friday, April 19, reducing the rate of new BTC creation. This event halves mining rewards every four years. The adjustment took place at 8:10 p.m. New York time on Friday evening at block height 840,000, confirmed by analytics platforms like mempool.space and Blockchain.com. The price of Bitcoin remained relatively steady, staying close to the $64,000 level following the halving event.
Understanding Bitcoin Halving and its Impact on Price Movements
After the successful Bitcoin halving of 4.0, the daily miners’ rewards were reduced to 450, down from 900. Analysts anticipate that the halving of BTC, which decreases the supply of new Bitcoins, will catalyze driving up the price of Bitcoin. Additionally, the increasing interest in spot Bitcoin ETFs will continue to support the positive market trend. Wyoming Senator Cynthia Lummis, among other lawmakers who support Bitcoin, has expressed her approval of the recent development.
Happy Halving!
The ‘Halving’ is one of Bitcoin’s ingenious features that creates scarcity and value, in the same way that scarcity in gold creates value.
So, what exactly is the Halving? And, why is today’s extra special?
— Senator Cynthia Lummis (@SenLummis) April 19, 2024
However, experts in the field at JPMorgan and Deutsche Bank believe that the market has already factored in the Bitcoin halving. Kok Kee Chong, CEO of AsiaNext, a digital-asset exchange catering to institutional investors, expressed:
As anticipated, the halving had already been factored into the market, resulting in minimal price fluctuations. Given the sustained institutional interest, the industry will have to wait and see if there will be a rally in the coming weeks.
Increasing tensions in the Middle East and signals from the Federal Reserve suggesting a potential halt in interest-rate reductions may impact the current positive outlook for Bitcoin’s near future.
Similar to a financial advisor, it’s crucial to note that the halving event will likely impact Bitcoin mining firms significantly, affecting their revenue rather than directly impacting the cryptocurrency’s price. This blockchain update can significantly impact miners’ annual income, potentially resulting in the loss of billions of dollars. Nevertheless, the impact of this phenomenon could be mitigated if the cryptocurrency’s price continues to rise.
Is a BTC price rally on the horizon?
The Bitcoin price may experience ongoing selling pressure in the coming weeks, often originating from Bitcoin miners. These miners are expected to sell their BTC holdings to offset the revenue losses following the halving event.
However, the BTC price has experienced a significant 65% increase this year following the introduction of spot Bitcoin ETFs. Despite the upcoming fluctuations in the market, long-term investors should take advantage of any price drops and continue to make investments. In the past, the price of Bitcoin has consistently reached its highest point during the bull market around 518-546 days after the Halving event. If this prediction proves accurate, the next Bitcoin peak will occur in September-October 2024.
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… pic.twitter.com/QXZUS7ZyjU
— Rekt Capital (@rektcapital) April 19, 2024
