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Bitcoin is hovering around $66,000 in global cryptocurrency markets after the halving
Bitcoin (BTC) is trading at $66,074 on Tuesday, slightly higher than its price a day ago. CoinDesk the data showed. Fourth bitcoin halving took place on Friday, after which the rate of issuance of new bitcoins dropped to 3,125 every 10 minutes.
It’s a bit surprising that bitcoin is trading at low prices after the halving. Experts explain this by saying that the price had already increased before the halving. In fact, it is the first time in the history of Bitcoin that the price had increased before the event.
On Tuesday, Ethereum traded at $3,180, BNB at $605 and Solana at $154, CoinDesk reported.
Halving means that the emission rate is halved. Halving refers to an alteration of the cryptocurrency’s fundamental blockchain technology, aimed at decreasing the rate of generation of new bitcoins.
Since there can only be 21 million bitcoins, and when newer bitcoins are fewer in number, this is likely to impact bitcoin prices.
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The slight increase in prices afterwards halving it is seen as the result of the price already taken into consideration.
Parth Chaturvedi, Investments Lead, CoinSwitch Ventures believes that markets have already priced in the halving, so there was no major volatility around the event.
“Prices are generally lower than recent highs due to geopolitical tensions, but we can expect short-term downward pressure as miners and ecosystem participants adjust to new supply dynamics. The fourth halving will bring BTC’s annual inflation to a lower level than gold and further push investors to explore it as a ‘store of value’ asset class,” Chaturvedi said.
Level 2 token
Shivam Thakral, CEO of BuyUcoin, believes that layer 2 tokens have outperformed bitcoin. “Although Bitcoin has not seen significant gains since the highly anticipated halving, Bitcoin layer 2 tokens have outperformed Bitcoin. These tokens could further outperform the market as more and more Bitcoin layer 2 projects launch their innovative scaling solutions in the coming weeks,” he says Thakral.
Industry insiders also believe that the bitcoin prices in 2024 will be determined by external factors.
“Past instances of Bitcoin price surges following halvings have often coincided with major macroeconomic events, such as the 2012 European debt crisis, the 2016 ICO boom, and the 2020 COVID-19 pandemic, underscoring the broader impact of economic environments on cryptocurrency markets. Bitcoin’s price trajectory in 2024 will be influenced by external variables such as geopolitical tensions, economic fluctuations and technological advancements will also play a significant role influence demand will impact the price,” says Sumit Gupta, co-founder of CoinDCX.
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