Bitcoin’s 1% increase after halving is trading at 64,766 dollars, potentially creating a new bull market due to the resulting supply squeeze.
This event supports Bitcoin’s total supply limit of 21 million BTC by reducing mining rewards from 6.25 BTC to 3,125 BTC per block.
The halving process aims to increase Bitcoin’s scarcity and potentially increase prices as a result. However, Bitcoin’s stability at around 64,000 dollars seems to have prevented the market from showing a sudden and significant reaction to this important event.
Bitcoin Halving: Supply Squeeze Shakes the Market
Bitcoin’s fourth halving occurred at block 840,000, marking a turning point in the management of Bitcoin’s supply by reducing mining rewards from 6.25 BTC per block to 3,125 BTC.
This event making an impact every four years supports Bitcoin’s total supply limit of 21 million. It also slows down the speed of new Bitcoin production, raising the potential for scarcity of the cryptocurrency.
The Bitcoin network completes the fourth-ever ‘halving’ of rewards to miners https://t.co/2ZoDt4k69b
— CNBC (@CNBC) April 20, 2024
However, Bitcoin balancing around 64,000 dollars after this halving shows that the market may have already priced in the event. This may reflect a more experienced and mature market structure compared to previous halving events.
The direct impact of halving can be summarized as follows:
Halving halves the mining reward, limiting the new Bitcoin supply.
The market’s response shows the event being priced as an expected development.
Historically, there has been an observed increase in Bitcoin prices after halvings, but each halving’s unique conditions can yield different results.
More data and time will be needed to evaluate the long-term effects of this halving. However, the strategic decline in Bitcoin’s supply is considered a significant development, especially for long-term investors.
Bitcoin Halving 2024: Miner Awards Sparking on Mining Shares
Bitcoin’s halving on April 20, 2024, with a decrease in block rewards from 6 BTC to 3.125 BTC, had a significant impact on the mining sector. This event, which occurs approximately every four years, significantly affects the financial sustainability of mining activities.
This halving particularly affected mining company shares, and investors began speculating on which companies could most effectively adapt to the new reward structure. For example, Riot Platforms (RIOT) and other large mining firms, Marathon Digital (MARA) and Clean Spark (CLSK), saw increases of over 10% in their stock prices.
Effects of halving:
Direct Impact on Mining Profitability: The reduction in mining rewards directly affects mining activities’ income.
Speculations Reflected on Stocks: Before halving, mining firm stocks listed on the Nasdaq saw significant price increases.
Adjusting Operational Strategies: Mining companies had to adjust their operational strategies to balance the financial impact of declining rewards.
Seeking Additional Capital: Mining companies sought additional capital to remain competitive and increase operational efficiency.
Trends over time show that while a short-term decrease in miner income is observed after halving, the potential increase in Bitcoin’s price and expansion of large mining operations generally lead to recovery within the year.
Bitcoin Price Prediction
Bitcoin (BTC/USD) is currently set at 67,329 dollars as the resistance level, while other resistance points at 69,232 dollars and 71,425 dollars could limit potential increases. At the same time, the instant support for Bitcoin is positioned at 63,045 dollars, with additional support possible at 61,387 dollars and 59,686 dollars in case of a decline.
The Relative Strength Index (RSI) is currently at a value of 51, indicating a neutral market. The downward trend resistance standing at 65,214 dollars is notable; therefore, Bitcoin staying below this level could sustain the downward pressure.
Bitcoin Price Graph
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