Bitcoin Halving Event Sparks 1.5% Increase in Bitcoin Price: What Investors Need to Know
Bitcoin experienced a 1.5% increase over the last 24 hours following the successful completion of the fourth Bitcoin halving event, marking a significant reduction in miner rewards. The event, which occurs every 210,000 blocks, saw the reward for mining a block drop from 6.25 BTC to 3.125 BTC.
The fourth Bitcoin halving event, a programmed process in the Bitcoin protocol, took place after the 840,000th block was mined. This event, occurring approximately every four years, is designed to manage scarcity and regulate the inflationary supply of Bitcoin.
As a result of the halving, Bitcoin miners will now receive 3.125 BTC per mined block, down from the previous 6.25 BTC. This process effectively slows down the rate at which new Bitcoin is created. The last three halvings in 2012, 2016, and 2020 led to significant drops in mining rewards over time.
Despite short-term predictions of price volatility within the crypto community, there remains optimism about the long-term potential of Bitcoin’s price. Billionaire investor Tim Draper believes that the halving will help push Bitcoin’s price up to “$250,000 or more,” a forecast he has consistently proclaimed, particularly in 2022.
Cryptocurrency markets surged on Friday, with a 47.5% spike in total crypto liquidations reaching $258.7 million and a more than double increase in total exchange inflows as investors eagerly awaited the Bitcoin Halving. The global cryptocurrency market cap now stands at 2.35 trillion, up 4.7% in the past 24 hours.
At the time of writing, BTC was trading at $63,914, gaining 0.7% in minutes after the halving, according to Benzinga Pro. The anticipation and impact of the fourth Bitcoin halving event have sparked excitement and optimism within the crypto community, with many looking forward to potential bullish trends in the coming months.
