Latest Articles

How much gold is deducted while selling?

Selling gold can be a lucrative endeavor, whether you're looking to cash in on investment holdings, liquidate jewelry, or divest assets. However, it's essential...
HomeLatestBitcoin Undergoes Halving, CoinGecko Confirms
Advertisements

Bitcoin Undergoes Halving, CoinGecko Confirms

Bitcoin, the leading cryptocurrency globally, has recently undergone its “halving,” a periodic event occurring approximately every four years, as reported by CoinGecko, a prominent cryptocurrency data and analysis company.

Advertisements

Following the completion of the halving, Bitcoin exhibited relatively stable behavior, experiencing a modest 0.47% decrease to $63,747.

Advertisements

Bitcoin enthusiasts had eagerly anticipated this halving, a fundamental change to the cryptocurrency’s underlying technology aimed at reducing the pace of new Bitcoin creation.

Advertisements

The concept of halving was integrated into Bitcoin’s code by its pseudonymous creator, Satoshi Nakamoto, from the outset, with the intention of curbing the rate of Bitcoin production.

Chris Gannatti, global head of research at asset manager WisdomTree, which promotes Bitcoin exchange-traded funds, described the halving as “one of the most significant events in crypto this year.

For some cryptocurrency enthusiasts, the halving underscores Bitcoin’s value as an increasingly scarce asset. Nakamoto set a limit of 21 million tokens for Bitcoin supply. However, skeptics view it merely as a technical alteration hyped by speculators to inflate the virtual currency’s price.

The halving mechanism entails reducing the rewards received by cryptocurrency miners for generating new tokens, thereby increasing the cost associated with introducing new Bitcoins into circulation.

This halving comes on the heels of Bitcoin’s surge to an all-time high of $73,803.25 in March, following a gradual recovery throughout 2023 from the dramatic plunge witnessed in 2022. As of Thursday, the world’s largest cryptocurrency was trading at $63,800.

Bitcoin and other cryptocurrencies have garnered support from the excitement surrounding the U.S. Securities and Exchange Commission’s approval of spot Bitcoin exchange-traded funds in January, along with expectations of interest rate cuts by central banks.

Previous halvings occurred in 2012, 2016, and 2020, with some cryptocurrency enthusiasts citing subsequent price rallies as indicative of Bitcoin’s potential price appreciation post-halving. However, many analysts remain skeptical of such predictions.

JP Morgan analysts, for instance, do not anticipate a post-halving surge in Bitcoin’s price, asserting that it has already been factored into the market. They expect Bitcoin’s price to decline post-halving due to being “overbought” and subdued venture capital funding in the crypto industry this year.

While financial regulators caution against Bitcoin’s high-risk nature and limited real-world utility, more regulators have begun approving Bitcoin-linked trading products.

Andrew O’Neill, a crypto analyst at S&P Global, expressed skepticism regarding drawing definitive price predictions from previous halvings, emphasizing that numerous factors contribute to Bitcoin’s price dynamics.

In recent weeks, Bitcoin has faced volatility amid geopolitical tensions and concerns about central banks maintaining higher interest rates for extended periods, reflecting broader uncertainties in global markets.

Advertisements
Advertisements