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The countdown to the highly anticipated bitcoin halving event is on, with just days to go until the cryptocurrency undergoes a significant shift in its network. This momentous occasion, scheduled for Friday, 19 April, will see the number of new bitcoins produced through mining cut in half, a process that occurs roughly every four years.
Analysts are predicting that this event could have a major impact on the future price trajectory of bitcoin. The last halving in 2020 was followed by a five-fold increase in the cryptocurrency’s price, continuing a pattern of record-breaking rallies after each previous halving.
Danny Scott, chief executive of crypto platform CoinCorner, emphasized the importance of the halving in shaping investor sentiment and market speculation. He stated, “The halving helps naturally increase price due to supply and demand over a medium to long term outlook, which in turn brings new people in as the price increases past previous all-time highs.”
The upcoming halving comes at a time when the crypto market is already experiencing significant growth, with an all-time high reached in March. The approval of the first bitcoin spot exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) in January has also brought billions of dollars worth of institutional investment into the market for the first time.
With increased demand and a reduction in supply on the horizon, some analysts believe that bitcoin could reach new heights in the coming months. Kadan Stadelmann, chief technology officer of blockchain firm Komodo Platform, noted, “Historically, the value of bitcoin has increased after each halving event. This trend is likely to continue during the current market cycle, considering the high amount of institutional interest.”
Ramani Ramachandran, chief executive of Router Protocol, added, “Institutional demand will be truly present during this halving, and already looks like it could outpace the massive retail demand seen after each previous halving. The two forces combined will be extremely interesting to watch.”
A recent survey of institutional investors and wealth managers found that 69% of respondents believed the halving would increase investment into bitcoin, with only 2% predicting a reduction in investment. The research also indicated that other cryptocurrencies, such as Ethereum (ETH), are expected to benefit from the increased interest in the crypto space following the halving.
As the countdown to the bitcoin halving continues, all eyes are on the cryptocurrency market to see how this event will shape the future of bitcoin and the broader crypto industry.
