One month after bitcoinis big halving eventPeople in the crypto community want to know where the leading cryptocurrency is headed.
The last Halving Bitcoin โ a technical event that halves the reward for mining new Bitcoin โ occurred on April 19-20, splitting the reward from 6.25 Bitcoin to 3.125. The Bitcoin halving, a feature to ensure the cryptocurrency's scarcity and protect it from inflation, occurs every four years.
Right now, the value of Bitcoin is around $65,000, and it is mostly in the green because inflation has decreased and the stock market is bullish. Bitcoin did not jump significantly after the halving process and currently sits approximately 12% below its all-time high of $73,803 set in March; it is still up around 140% in the last year. But historically, Bitcoin Jumped After Halving Event.
The first Bitcoin halving This happened in November 2012, when the reward for mining a block was reduced from 50 Bitcoin to 25. At that time, the price of Bitcoin was 12 dollars. It rose to $44 in 100 days and then to $135 in 300 days. The second halving event occurred in July 2016, when the reward was reduced from 25 Bitcoin to 12.5. The flagship cryptocurrency went from $658 to $1,551 in 300 days. At the third halving in May 2020, the Bitcoin incentive was halved to 6.25 Bitcoin. At that time, Bitcoin was at $8,601, rising to $50,941 in 300 days.
Steven LubkaCEO of financial services company Bitcoin Bitcoin Swan, seems optimistic about the growth of the main cryptocurrency. In an email, he wrote that Bitcoin's performance has a huge breakthrough before the halving, which historically has not happened. โBitcoin has never seen a sharp rise after the halving; it usually happens month to month as time goes on,โ he said.
Rennick Palley, founding partner of crypto venture capital firm strataHe adds that in the next 12 months following the halving, Bitcoin will likely continue its upward price movement.
So why is this year's halving different from its predecessors? It is mainly because Bitcoin peaked a month earlier, making it difficult to maintain the same momentum. Furthermore, experts add, the Widespread Bitcoin Adoption and the launch of detect Bitcoin ETF The factors that affect the price movement of the main cryptocurrency have changed.
According to Palley, the price of Bitcoin is now largely determined by global liquidity dynamics and adoption. โAs fiat money continues to be printed and more people around the world recognize the value of Bitcoin as a store of value, the price of Bitcoin in dollar terms will continue to rise,โ she said.
Many will continue to be surprised by the changes in Bitcoin's dynamics, but analysts say they will not be surprised if the flagship cryptocurrency crosses the $100,000 mark this year. โIt's always difficult to forecast an exact time frame, but I expect six-figure Bitcoin on the horizon,โ Lubka said.
CoinGecko, a cryptocurrency tracking website, discovers that the price of Bitcoin has increased by 96.302% Since 2013.
