This Weekend’s Planned Halving Of Bitcoin Will Have The Following Effects On The Cryptocurrency Market!

Cryptocurrency Market on Edge as Bitcoin Halves

The term “halving” describes a change made to Bitcoin’s core blockchain technology with the intention of slowing down the rate at which new bitcoins are created. Since the anonymous Satoshi Nakamoto created it, Bitcoin has been designed to have a limited number of 21 million tokens.

This is the fourth time that Bitcoin has undergone a halving event. The incentive was reduced from $50 to $25 during the first halving in 2012. With Bitcoin pricing at $64,000 as of April 19, the most consecutive halving will further cut the payout to $3.125, or around $200,000 at current rates.

Half of all Bitcoins will have been mined by 2041, when the process of halving will continue. But given the recent geopolitical tensions between Iran and Israel, which have sparked market volatility, it is expected that this particular Bitcoin halving event would differ from its predecessors.

 As a result, there was a notable decline in the value of Bitcoin, which fell to its lowest point in a month. Bitcoin dropped more than 5.5% on Friday during the Asia session, reaching $59,961.

According to experts, there could be an influence on the price of Bitcoin due to the halving event because of the increased scarcity of the cryptocurrency, which could drive up prices and draw in a new wave of investors. A big surge in Bitcoin usually occurs about 60 days prior to the halving event. This has been continuously noted in previous cycles, such as 2016 and 2020.

There is usually a retracement period after the surge, which happens about 28 to 14 days before to the halving. When taking into account downside wicks, this pattern is more prominent in the 2020 cycle, with a 19% retrace, and in the 2016 cycle, with a 40% retrace.