The cryptocurrency community is gearing up for the upcoming Bitcoin halving event, which is likely to take place this week. For half of the events, no calendar date has been set, but they usually occur every four years. According to current forecasts, the next halving will occur on Friday evening or Saturday morning.
What is Bitcoin Halving?
Halving refers to a change in Bitcoin’s blockchain technology designed to reduce the rate at which new Bitcoins are created. Since its creation under the pseudonym Satoshi Nakamoto, Bitcoin has been created with a minimum of 21 million coins.
This will mark the fourth halving event in Bitcoin history. In the first half of 2012, the stock dropped from $50 to $25. The new halving will cost as little as $3,125, equivalent to nearly $200,000 at current prices, with Bitcoin trading at $64,000 on April 19.
The halving process continues until 2041, when all Bitcoins are mined. However, this Bitcoin halving is expected to be different from previous events due to recent market instability caused by geopolitical tensions between Iran and Israel. As a result of this, Bitcoin suffered a major decline, hitting its lowest point in a month. Bitcoin fell 5.5% to $59,961 during the Asian session on Friday.
In the long run, this supply reduction will further increase corporate capital and trade while strengthening Bitcoin’s stock-to-flow ratio. ZebPay is both short-term and long-term positive for Bitcoin and the broader cryptocurrency market. How will the Bitcoin halving affect the cryptocurrency market? Experts say that this halving event may affect the price of Bitcoin because it will increase uncertainty and cause the price to fall and attract a new wave of investors to the cryptocurrency market.
Usually, Bitcoin experiences a big increase around 60 days before the halving event. According to experts, this trend has been observed in previous cycles, including 2016 and 2020, when cryptocurrencies are always affected. This is usually followed by an assembly and adjustment period, which occurs 28 to 14 days before the semester. This pattern was particularly evident in the 2020 cycle, with a return of 19%, while in the 2016 cycle, the return was even more pronounced, at 40%, when taking into account the descent of the shadow.
Rajagopal Menon, the Vice President of WazirX, said: “After the halving, Bitcoin will enter a phase of lateral movement, called a rally. This phase will occur near the previous levels, preparing the market for the next wave of price increases shows that Bitcoin prices are likely to experience parabolic increases after the halving period in discussions about events after the 2020 half, and the important parts of the half and regrouping. Menon added, “The general consensus is that prices will rise due to supply shocks, but geopolitical events such as threats will cause markets to fall, as they did in the past few weeks.”