Bitcoin enthusiasts eagerly awaited Friday’s “halving,” a significant event in the cryptocurrency’s technology aimed at reducing the rate of new bitcoins being created.
The halving occurs approximately every four years and was originally incorporated into Bitcoin’s code by its pseudonymous creator, Satoshi Nakamoto. It entails a 50% reduction in the reward given to network contributors who secure the system, directly affecting the introduction of new bitcoins into circulation. With only 21 million bitcoins available and the halving diminishing their supply, it adds to the digital currency’s scarcity.
This scarcity, coupled with historical demand surges following previous halving events, suggests a potential upward push on prices. CoinGecko’s countdown clock indicated that the halving was scheduled for the early hours of Saturday GMT.
Past halvings occurred in 2012, 2016, and 2020, often followed by price rallies. However, while some cryptocurrency enthusiasts anticipate a similar outcome for Bitcoin’s price after this halving, many analysts remain skeptical.
JP Morgan analysts, for instance, anticipate a post-halving price decrease, arguing that the event has already been factored into the market. They suggest that Bitcoin is currently “overbought,” and the subdued venture capital funding in the crypto industry this year may contribute to a decline in price.
