Bitcoin, the world's leading cryptocurrency, underwent a planned reduction in the rate of new coin creation on April 19th. This event, known as a “halving,” occurs approximately every four years and is designed to slow down the overall supply of Bitcoin, according to CoinGecko.
According to Coinmarketcap data, Bitcoin's dominance currently stands at 54.14%, up 0.12% on the day.
After the halving, Bitcoin price remained relatively stable, experiencing a slight decline of 0.47% before settling down. INR58,89,117 for Wazirx.
This event was highly anticipated by cryptocurrency enthusiasts who believe it will solidify Bitcoin's value as a rare asset. Bitcoin founder Satoshi Nakamoto capped the total supply at 21 million coins.
The halving comes after a significant price change for Bitcoin. Bitcoin reached an all-time high of $73,803.25 in March 2024, but has since declined slightly. The broader crypto market has also been boosted by the recent approval of a spot Bitcoin ETF in the US and hopes for lower interest rates.
What do the experts believe?
“I'm a little skeptical about the lessons that can be learned from past halvings from a price prediction perspective,” said Andrew O'Neill, a cryptocurrency analyst at S&P Global, as quoted by Reuters.
“It's just one of many factors that drive the price,” he said.
As quoted by Reuters, ahead of the event, JPMorgan analysts said that the price of Bitcoin will fall after the halving because it is “overbought” amid weak crypto funding. I expected it.
Analysts at JPMorgan said this week: “We don't expect Bitcoin prices to rise after the halving, as it's already priced in.”
“The market had priced in the halving, so there were no big moves near the event. However, look at the stark contrast yesterday with tech stocks plummeting while crypto prices rose. You can understand how cryptocurrencies are becoming decoupled as cryptocurrencies,” Parth Chaturvedi, head of investments at CoinSwitch Ventures, told Mint about the new asset class.
“Geopolitical tensions have pushed prices down from recent highs overall, but we expect downward pressure in the near term as miners and ecosystem participants adapt to new supply dynamics. The fourth halving will bring BTC's annual inflation rate lower than that of gold, further encouraging investors to explore BTC as a 'store of value' asset class,” Chaturvedi added. Ta.
What does Bitcoin halving mean?
Bitcoin halving is a predetermined event written into Bitcoin's code that occurs approximately every four years. This reduces the reward that miners receive for validating transactions by half, thereby slowing down the rate at which new Bitcoins come into circulation. This mimics the scarcity of precious metals, which can increase the value of Bitcoin over time as demand remains stable or increases.
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Published: April 20, 2024, 6:41 AM IST
