The Bitcoin network has completed its fourth Bitcoin Halving event, after which crypto market investors are very excited and expecting a big jump in the prices of BTC in the coming days. Before knowing the impact of Bitcoin's fourth halving on the market, it is important to understand what Halving is and what it impacts on BTC earlier. Bitcoin Halving which happens once every four years is a programmed event.
During the Halving event to regulate Bitcoin creation, the block reward received by BTC miners is halved. Due to this, miners doing Bitcoin mining receive less BTC for the mining efforts made. Halving is a fundamental aspect of Bitcoin's design, which ensures that new Bitcoins cannot be created too quickly.
Halving is a fundamental aspect of Bitcoin's design, which ensures that new Bitcoins cannot be created quickly. If 21 million Bitcoins were mined, the miners would not receive BTC as a block reward, but miners would be able to earn revenue only through transaction fees.
Previously, whenever Bitcoin Halving happened it affected the entire crypto market along with BTC. In fact, after every Halving event, there has been a jump in the price of BTC. One of the main reasons behind this event is the decrease in its supply rate, which creates pressure on the increasing prices of Bitcoin.
For example, Bitcoin gained momentum after the halving event of 2020, and immediately on November 10, 2021. BTC managed to create its first all-time high by reaching $69,000. Whereas before this event the price of BTC was around $9485.
Bitcoin's creator Satoshi Nakamoto released the Bitcoin White Paper in 2008 and BTC was launched in 2009. Since its launch, the Bitcoin Halving Event has happened 4 times on the Bitcoin network. Meanwhile, the first Bitcoin Halving event took place in 2012, before which miners were given 50 BTC as a block reward.
After the first Halving the block reward reduces to 25 BTC. Just 4 years later, after the second halving in 2016, the number of block rewards decreased to 12.5 BTC, and after the third halving in 2020, it was 6.25 BTC.
Now the fourth Bitcoin Halving event taken place where miners will receive only 3.12 Bitcoins as a block reward. This will act as the main factor in increasing the price of BTC by reducing its supply.
The fourth Bitcoin Halving has been completed, about which crypto market investors are quite optimistic. It’s believed that the effect of Halving can be seen on the price of BTC in the upcoming time. Now the block reward that miners receive will remain only 3.12 BTC, which will play an important role in regulating the supply of BTC.
The reduction in token supply acts as pressure to increase the price of BTC and the possibility that BTC will soon be successful in achieving its target of $100,000. Currently, Bitcoin is trading between $64,000 and $70,000 but shortly before Halving it has made its all-time high of $73,737. In this situation, there is a strong possibility of BTC reaching record levels after Halving.
Mining will be difficult for miners after the Halving Event and the Bitcoin Halving Event as it will also increase the mining difficulty for the Bitcoin miners. It makes new BTC mining a more difficult task than before. Besides, Bitcoin mining costs are also continuously rising.
According to the data from the last adjustment of BTC mining difficulty every 2,016 blocks or every two weeks, Bitcoin Mining Difficulty has reached its new all-time high of 86.4 trillion. According to the information of Coin Gabbar, the average Bitcoin mining cost is continuously increasing and currently, it is $49,902. It’s believed that this cost is likely to double directly after halving.
At the same time, there has also been a continuous increase in the BTC hash rate. Due to all these reasons, the machines used for mining become completely useless and miners have to face difficulties in mining BTC. However, in these difficult times, miners are confident that the reduction in supply of BTC after halving will increase its price and they will be able to earn good profits.
Bitcoin Halving Event is the biggest event in the cryptocurrency market because it is associated with BTC, the largest cryptocurrency in the crypto market. Since Halving has a history it brings a positive trend for the entire crypto market by boosting the price of BTC.
Whenever this event has happened in the past years, other cryptocurrencies in the market have also performed well. In such a situation some experts believe that within a few days of the Halving event, a bull run will start in the entire cryptocurrency market. Also, there will be a big jump in the prices of other currencies along with BTC.
On the other side, some experts believe the market has already shown bullishness before Halving, and Along with BTC other currencies have seen a rise at record levels. In such a situation, there is little hope that the bull run will continue in the crypto market after Halving.
For this, experts gave the example of spot Bitcoin ETF approval and said that before the spot Bitcoin ETF approval, the market had seen a rise but when all the 11 spot Bitcoin ETFs got the approval of the SEC, no major movement was seen in the market.
It’s expected that the impact of Bitcoin Halving will be positive on the entire cryptocurrency market along with BTC in the coming days.
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