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Bitcoin Halving Event Likely This Weekend. Here’s What to Expect
THE crypto community is preparing for the upcoming Bitcoin Halving event, where, as the name suggests, Bitcoin Rewards will be halved. As for the date of the halving, there is no fixed date on the calendar, but it typically occurs about once every four years. Current estimates suggest that the next halving will occur late Friday or early Saturday.
What is it Bitcoin halving?
Bitcoin rewards for miners are halved every four years. Miners are those who solve the complex cryptographic puzzle to create a new blockchain in the network and are rewarded for this effort with Bitcoin.
The creator, Satoshi NakamotoHe had programmed it so that after 210,000 blocks were mined, the rewards for miners would be reduced by half, which happens approximately every four years.
This is the fourth halving event. The first halving in 2012 reduced the reward price from 50 USD to 25 USD. The latest one will reduce the reward to 3,125 USD, which at the current level is valued at around 200,000 USD. The price of Bitcoin was 63,000 USD on April 16.
The halving will continue until 2041, when all Bitcoin will have been mined.
However, this Bitcoin Halving The event is expected to be different from previous ones, as recent geopolitical tensions between Iran and Israel have triggered market turbulence. Bitcoin has suffered a sharp decline, hitting its lowest level in a month. Bitcoin slid more than 5.5% to $59,961 in the Asian session on Friday.
Here’s How Analysts See the Impact of the Halving on Bitcoin’s Price
Manhar Garegrat, Country Head India and Global Partnerships at Liminal Custody Solutions
The Bitcoin halving could impact the price of Bitcoin due to its increased scarcity, resulting in upward pressure on prices and an influx of new investors into the cryptocurrency market.
In addition to the potential impact on altcoins, it is worth considering the possibility of new products being introduced into the cryptocurrency market. Just as spot ETFs are being launched around the world, innovative financial instruments may emerge in response to the dynamics surrounding the Bitcoin halving, offering investors alternative avenues for exposure to digital assets.
Shivam Thakral, CEO of BuyUcoin
Bitcoin price may experience short-term corrections or declines after a halving, but historical precedent suggests that a halving could trigger significant changes in the cryptocurrency market, leading to a new all-time high in the coming months.
Jyotsna Hirdyani, Head of South Asia at Bitget
Historically, post-halving phases have been characterized by significant market movements, with Bitcoin frequently reaching new all-time highs (ATH). Currently, with the approval of ETFs in the US and now Hong Kong, there has been a continued influx of funds that has pushed Bitcoin prices to consecutive new highs. However, there is short-term uncertainty in the macroeconomic situation.
It is important to note the risk of a pullback in Bitcoin prices due to macroeconomic uncertainty despite the positive market sentiment. If the cryptocurrency space works according to historical precedents, then within 10-18 months we can expect Bitcoin to reach new ATHs of $100,000 and above.
Jithin Mohandas, Research Analyst, Mudrex
Bitcoin is currently exhibiting a pre-halving retracement characterized by bearish signals and sideways market movements. A technical analysis of the weekly time frame reveals the formation of a Cup and Handle pattern on the Bitcoin price chart. Traditionally, this pattern can proceed with further downward movements. In particular, there is a strong support in the price range between $60,000 and $61,000. If this support level is breached, a decline towards the $51,000 mark is plausible. In the worst-case scenario, prices could potentially drop to around $45,000 and this could indicate a temporary bear market.
Rajagopal Menon, Vice President, WazirX
The consensus is that prices should rise due to the supply shock, but geopolitical events like this threat could cause a market crash, as happened over the weekend.
(Disclaimer: Recommendations, advice, opinions and views provided by experts are personal. They do not represent the views of The Economic Times)
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