In the cryptocurrency community, waiting for Bitcoin's halving is a bit like a New Year's Eve countdown. Instead of fireworks, not only the price of the king of cryptocurrencies, but also all other altcoins, shoots up. Another bitcoin halving has just taken place, i.e. the division of the reward for bitcoin miners. The cyclical nature of this event (exactly every four years) resulted in increases in the cryptocurrency market again and again. Will it be the same this time?
Bitcoin halving is a fact! Bitcoin miners will receive half the reward
As it is easy to deduce, the last halving took place in 2020, exactly 4 years ago. Bitcoin's situation has been a thriller since then, as Satoshi Nakamoto's cryptocurrency has seen successive rises and falls. A clear example of this is the fact that bitcoin at the time of the previous halving cost only USD 7,900, and after the halving its price temporarily dropped to approximately USD 5,200. However, it took only 5 days for the rate to exceed USD 9,000 and, with the pace of a Spacex rocket, it began to approach the level of the then ATH. The following months brought even greater increases, until it finally exceeded USD 69,000 in November 2021.
Now we are witnessing another halving, i.e. the division of the reward for bitcoin miners. Satoshi Nakamoto created the Bitcoin network on such terms that initially the reward for mining one block was 50 bitcoins. The Bitcoin halving in 2012 reduced this reward to 25 bitcoins, and the one in 2016 reduced it to 12.5 BTC. The last halving in 2020 also split the reward for miners to 6.25 BTC per block. After today's halving, the reward drops to 3,124 BTC.
Will we experience a cyclical increase in the value of BTC again?
This question is asked not only by cryptocurrency enthusiasts, but also by the entire financial world (including Wall Street). The Bitcoin ecosystem has definitely gone mainstream, and the price of Satoshi Nakamoto's cryptocurrency is followed by the world's largest economic media.
It is worth noting here that this bitcoin halving is different from all previous ones. The reason for this difference is the approval of BTC ETF funds in January this year. This event triggered a bull market in the digital asset market, which led to the current ATH of bitcoin beating even before the cyclical halving.
Will Bitcoin and the digital asset market explode again like fireworks on New Year's Eve this time? Many analysts believe so. Some even predict an increase in the BTC rate to USD 130,000-150,000. Others say that the cryptocurrency spring caused by BTC ETFs will make this year's bitcoin halving different than in previous years. Of course, the only way to convince one or another of the experts is to watch the market over the coming weeks. In fact, the coming week will allow us to draw a lot of conclusions.
