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Like shoulder pads, Blink-182, and measles, bitcoin is making a comeback.
The total value of the world's most popular cryptocurrency. overcome Yesterday $1 trillion for the first time since 2021. Meanwhile, the broader crypto market surpassed $2 trillion in market capitalization, boosted by investor confidence. If cryptocurrencies were a publicly traded company, it would be the the largest room in the world behind Microsoft, Apple and Saudi Aramco.
Why are investors so excited? Bitcoin spot ETFs have a lot to do with this. Since the SEC approved them last month, crypto funds have received nearly $10 billion in deposits, according to CryptoQuant. But there is another reason for the commotion: it is almost time to reduce by half.
- Halving is a feature within bitcoin that halves the rate of new coins entering circulation to keep supply in check. Bitcoin is a finite resource, so reducing supply theoretically drives up prices.
- The event occurs approximately every four years and has led to eye-popping price increases in the past. In 2020, the halving was a 700% gain for investors.
ButโฆAlthough cryptocurrency holders are considering halving with the eyes of Mr. Krabs' dollar sign, experts warn that there is a decay effect. This year's event may not result in price increases like those of the past.-DC
