Bitcoin Price Prediction as ‘Bitcoin Halving’ Executes Successfully – Will a New Bull Market Start Now?
Bitcoin, currently trading at $63,999 with a 3.50% increase post-halving, introduces a supply squeeze that might kickstart a new bull market.
The event cuts the mining reward from 6.25 to 3.125 bitcoins, underpinning Bitcoin’s strategy to cap its total supply at 21 million coins.
While the halving aims to increase scarcity and potentially boost prices, the immediate market reaction has been subdued, with Bitcoin stabilizing around $64,000.
The fourth Bitcoin halving took place late Friday at block height 840,000, marking a pivotal change in the cryptocurrency’s supply dynamics. This event, occurring approximately every four years, reduces the mining reward from 6.25 to 3.125 bitcoins.
Such reductions are part of a predefined strategy to limit the total supply of Bitcoin to 21 million, enhancing its scarcity by halving the influx of new coins into circulation.
The Bitcoin network completes the fourth-ever ‘halving’ of rewards to miners https://t.co/2ZoDt4k69b
— CNBC (@CNBC) April 20, 2024
Despite the potential for a supply squeeze to elevate prices, the immediate market reaction was understated, with Bitcoin’s price stabilizing around $64,000.
This muted response might stem from the halving already being factored into the price, reflecting a more sophisticated market understanding compared to earlier halvings.
While it is too soon to determine the long-term impact of this halving, historical trends have shown significant price rallies following such events. However, whether this pattern will repeat remains to be seen, as each halving unfolds under unique market conditions.
The Bitcoin halving on April 20, 2024, significantly altered the compensation landscape for Bitcoin miners by slashing the block reward from 6 BTC to
