Bitcoin Halving Event: A Look Back and Ahead at the Crypto Markets and Economic Landscape
The much-anticipated Bitcoin halving event is just 65 blocks away, and the crypto markets, as well as the wider financial markets, are waiting with bated breath. With the pre-programmed event expected to happen within the next 10 hours, the excitement and speculation surrounding the event are at an all-time high.
As the countdown to the Bitcoin halving continues, the markets are flooded with commentaries about the potential impact on Bitcoin prices and the broader crypto world. Currently, the overall crypto market capitalization stands at $2.35 trillion, with Bitcoin’s price sitting 12 percent below its all-time high.
Looking back at the previous Bitcoin halving event that took place on May 11, 2020, the third halving reduced the Bitcoin mining reward to 6.25 Bitcoin per block. Fast forward to the present, and Bitcoin is now trading near $64,960 with a market capitalization of $1.28 trillion. The circulating supply has also increased to 19.7 million, representing 93.75 percent of the maximum supply of 21 million.
The economic landscape has seen significant changes since the last halving event, with the onset of the Covid-19 pandemic in early 2020 leading to a contraction in the U.S. economy. The Federal Reserve responded by slashing interest rates and increasing its holdings of Treasury securities and mortgage-backed securities to support the flow of credit.
Fast forward to the present, and the Fed has started tapering its asset purchases and raising interest rates to combat inflation. This shift in monetary policy has had a significant impact on the broader financial markets, with the Dollar Index strengthening and U.S. bond yields rising.
Despite the challenging macro-economic backdrop, the halving euphoria has helped Bitcoin and other cryptocurrencies clock gains in the past 24 hours. Ethereum, Solana, Cardano, BNB, Toncoin, Dogecoin, and XRP have all seen gains, with more than 90 percent of the top 100 cryptocurrencies trading in the green zone.
As the crypto world braces for the upcoming Bitcoin halving event, the excitement and anticipation continue to grow. Stay tuned for more updates on the latest cryptocurrency news at rttnews.com.
