The Bitcoin halving is fast approaching, with less than 2,900 blocks left Miner rewards will be halved. This event, expected to take place sometime in April, is of great importance Bitcoin’s price might enjoy a parabolic move upwards after it occurs.
Bitcoin halving set for April 19
Facts from Coinwarz shows that the Bitcoin halving will take place on April 19 in Block 840.000. This projection is based on the flow of Bitcoin average block timemeaning the halving could happen a little earlier or sometime after April 19. However, the main focus remains that the supply of miners will be halved.
The halving event is a deflationary measure Bitcoin founder Satoshi Nakamoto, encoded in the flagship crypto and takes place after every 210,000 blocks. Three halving events have occurred since the Genesis block in 2009, when the first block of Bitcoin was mined. The first was on November 28, 2012, when miner rewards were reduced from 50 BTC to 25 BTC.
The next Halving event took place on July 9, 2016, during the cutting rewards for miners to 12.5 BTC. The third took place on May 11, 2020, reducing the reward to 6.25 BTC. Now, miner rewards will be halved again, bringing them down to 3,125 BTC.
This reward is the amount BTC miners receive for validating each block of new transactions on the blockchain. While this event mainly affects miners, the crypto community is watching it closely due to the ripple effects it could have on the market. The Bitcoin offering is due to the rewards of these miners, and a reduction in that usually drives the value of Bitcoin up.
Bitcoin’s Performance After Each Halving
The halving has historically always led to a price increase for Bitcoin. Ninety days after the first halving on November 28, 2012, the price of Bitcoin rose from $12 at the time of the halving to $1,000. Then, a year after that halving, the price of Bitcoin experienced a gain of more than 8,000%.
Source: MilkRoad
This parabolic price increase also occurred after the second and third halving eventswith Bitcoin’s price rising from $650 and $8,821 (at the time of the halving) to $2,506 and $56,612 (90 days after the halving) in 2016 and 2020, respectively. Bitcoin also gained 284% and 559% a year after the event.
This time it is expected to be no different than Bitcoin again predicted to experience a huge upward movement after April. This bullish sentiment is further reinforced by The question of Bitcoinwhich has continued to rise despite declining supply.
At the time of writing, Bitcoin is trading around $70,400, up in the past 24 hours according to facts from CoinMarketCap.
BTC price struggles ahead of halving | Source: BTCUSD on Tradingview.com
Featured image of 99Bitcoins, chart from Tradingview.com
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