The third Bitcoin halving occurred in 2020. In this halving event, the market value of Bitcoin even exceeded 1 trillion US dollars, and also set a very high price of 67,450 US dollars, which brought great excitement to the currency circle. This came as a huge shock, and it also made investors look forward to the next Bitcoin halving event. Based on this, will the currency circle fall after the halving? Basically negative. According to past data, the probability of a decline is relatively small. This is also a good opportunity for investors to ambush Bitcoin in advance. Next, the editor will talk about the Bitcoin halving in detail.
According to past data analysis, the probability of Bitcoin falling after halving is relatively small. Over the past three halvings, Bitcoin has achieved new all-time highs each time. According to the predictions of analysts in the circle, the highest price of Bitcoin after the halving in 2024 may reach US$58,364.45, with the average price being US$39,435.44. It is expected that by 2025, the price of Bitcoin may reach a maximum of $61,124.93. It should be noted that these are only analysts' predictions and do not mean that such prices will definitely appear in the future. Investors should analyze the current market conditions when making investment decisions.
Bitcoin halving is a key catalyst that pushes Bitcoin into a new bull market. Based on observations from the previous three halving events, the price of Bitcoin showed an upward trend in the months before and after the halving. In fact, the price of Bitcoin has reached an all-time high, largely due to the impact of the halving. However, it’s important to note that this new high only came a few months after Bitcoin’s halving. Therefore, the impact of halving on Bitcoin price will take some time to be reflected.
From a fundamental perspective, the Bitcoin halving means that the number of Bitcoins that can be mined will gradually decrease in the future, and the final total will reach 21 million. This feature makes Bitcoin scarce relative to fiat currencies. Unlike fiat currency, the issuance of Bitcoin is limited, which means that the value of Bitcoin is not affected by monetary policy cycles. Because there is no upper limit on the issuance of fiat currency, the price of bitcoin exchange for fiat currency may be affected by the monetary policy cycle.
It is expected that Bitcoin’s halving will begin in April 2024. Bitcoin’s halving is an important event for the Bitcoin network, occurring every four years or so. Halving will cause Bitcoin's block reward to be halved. The initial reward is 50 Bitcoins, but after each halving, the number of rewards will also be halved, so the production of new Bitcoins will also be reduced.
Bitcoin’s halving event will have an impact on multiple aspects:
The supply reduction of Bitcoin is caused by its halving mechanism. The number of new Bitcoins added every day is halved, which makes Bitcoin more scarce and could put upward pressure on the price.
Bitcoin’s halving usually has an impact on the price. This is because a reduction in supply could trigger increased investor demand for Bitcoin, pushing the price higher. However, price increases are not guaranteed and market reaction depends on a number of factors.
3. Miner incentives: The halving event will affect the income of Bitcoin miners because the reward they receive every time they mine a block is halved. This may lead to the closure of some uneconomic mines, but may also prompt miners to adopt more efficient mining equipment and methods.
4. Network security: Bitcoin’s halving event may have an impact on the security of the network. As rewards are halved, some miners may quit, reducing the total computing power of the network. However, over time, new mining rigs may emerge, rebalancing the security of the network.
5. Investor sentiment: Bitcoin’s halving event usually attracts widespread market attention and may cause investor sentiment to fluctuate. Such sentiment swings can produce short-term fluctuations in prices.
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