09/05/2024
BITCOIN HALVING
So What Just Happened?
On April 19, 2024, at 8:09 p.m. ET, the fourth bitcoin halving took place. While some hard-bitten international enthusiasts may have stayed up late or woken up early to watch the bitcoin block tick over 840,000, the halving itself is, at least initially, a non-event for most investors.
The immediate impact of the halving is felt primarily by bitcoin miners, who see their block rewards cut in half, affecting their profitability and potentially leading to changes in the cryptocurrency mining industry.
After this most recent halving, the reward for mining a block of bitcoin decreased from 6.25 BTC per block to 3.125 BTC per block.
As the rate at which new bitcoins enter circulation is reduced by 50%, the asset becomes increasingly rare. This built-in deflationary mechanism creates potential long-term upward pressure on bitcoinβs price. However, the relationship between halving events and price appreciation is not always straightforward and can be influenced by various market factors.
βBitcoin trading volume generally sees the most significant increase in the 60 days prior to halvings, as interest builds and prices gain momentum,β says Megan Stals, a market analyst at trading platform Stake.
βThis has happened again, with data from crypto exchanges showing a notable increase in volume in March when compared to February, as investors seek more exposure.β