Bitcoin halving scheduled for this weekend - here's how it will impact the crypto market
Bitcoin falls 8% in five days; here are 4 reasons behind the plunge The halving refers to an alteration in the foundational blockchain technology of Bitcoin, aimed at decreasing the pace of generating new bitcoins. Since its creation by the pseudonymous figure Satoshi Nakamoto, Bitcoin has been structured to possess a finite supply of 21 million tokens. This marks the fourth halving event in Bitcoin's history.
The initial halving in 2012 saw the reward drop from $50 to $25. The most recent halving will further reduce the reward to $3.125, equivalent to nearly $200,000 at current prices, with Bitcoin trading at $64,000 as of April 19. The process of halving will persist until 2041, by which time all Bitcoins will have been mined.
However, this particular Bitcoin halving event is anticipated to deviate from its predecessors due to recent geopolitical tensions between Iran and Israel, which have stirred market instability. Consequently, Bitcoin witnessed a significant downturn, plummeting to its lowest level in a month. On Friday, during the Asia session, Bitcoin experienced a decline exceeding 5.5%, falling to $59,961.
“In the long term, this supply reduction could attract more institutional and retail capital while amplifying Bitcoin's stock-to-flow ratio. ZebPay is bullish about both the short-term as well as long-term outlook for Bitcoin and the wider crypto market," said Rahul Pagidipati, CEO, ZebPay. Also read: Bitcoin halving expected on April 20, here's what it means; should you invest? Experts say that the halving event might impact Bitcoin's price as its heightened scarcity could result in upward pressure on prices and attract a wave of new investors to the cryptocurrency market.
Read more on livemint.com
