Bitcoin’s halving event likely this weekend. Here’s what to expect

The crypto community is preparing for the upcoming Bitcoin halving event, where, as the name suggests, Bitcoin rewards will be cut in half. When it comes to the halving date, there are no fixed calendar dates, but it usually occurs about once every four. years. Current estimates indicate that the next halving will occur sometime late Friday or early Saturday.

What is Bitcoin Halving? Bitcoin rewards to miners are halved every four years. Miners are the ones who solve the complex cryptographic puzzle to create a new blockchain in the network and are rewarded for this effort by Bitcoins.

The creator, Satoshi Nakamoto, programmed it so that after 210,000 blocks are mined, rewards to miners are cut in half, which is roughly every four years.

This is the fourth halving event. The first halving in 2012 lowered the reward price from USD50 to USD25. The latest one will reduce the reward to USD3.125, which is valued at almost USD200,000 at the current level. Bitcoin price stood at USD63,000 on April 16.

Halving will continue until 2041 when all the Bitcoins are mined.

However, this Bitcoin halving event is expected to be different from previous ones, as recent geopolitical tensions between Iran and Israel have caused market turbulence. Bitcoin experienced a sharp decline, hitting its lowest level in a month. On Friday, Bitcoin fell more than 5.5% to $59,961 in the Asia session. Here’s how analysts see the impact of halving on Bitcoin’s price Manhar Garegrat, Country Head India & Global Partnerships at Liminal Custody Solutions. .

In addition to the potential impact on altcoins, it is worth considering the possibility of new products being launched in the crypto market. Just as spot ETFs are being launched around the world, innovative financial instruments may emerge in response to the dynamics surrounding the Bitcoin halving that offer investors alternative avenues for exposure to digital assets.

Shivam Thakral, CEO of BuyUcoinBitcoin’s price may experience short-term corrections or declines after a halving, but historical precedent suggests that the halving could catalyze significant moves in the crypto market that could reach a new all-time high in the coming months lead.

Jyotsna Hirdyani, Head of South Asia at Bitget. Historically, post-halving phases have been marked by significant market moves, with Bitcoin frequently reaching new all-time highs (ATH). Currently, with the approval of ETFs in the US and now in Hong Kong, there has been a continuous influx of funds driving Bitcoin prices to successive new highs. However, there is short-term uncertainty in the macroeconomic situation.

It is important to note the risk of pullback in Bitcoin prices due to the uncertainty in the macro economy despite positive market sentiment. If the crypto space is running on historical record, we can expect Bitcoin to rise to new ATHs of $100,000 and above within 10-18 months.

Jithin Mohandas, Research Analyst, Mudrex Bitcoin is currently exhibiting a pre-halving retracement characterized by bearish signals and lateral market movements. A technical analysis of the weekly timeframe reveals the formation of a Cup and Handle pattern in Bitcoin’s price chart. Traditionally, this pattern can continue further downward movements. There is particularly robust support within the $60,000 to $61,000 price range. If this support level is breached, it is plausible to expect a pullback to the $51,000 mark. In a worst-case scenario, prices could potentially fall to around $45,000 and this could indicate an interim bear market.

Rajagopal Menon, Vice President, WazirX The general consensus is that prices should rise due to the supply shock, but geo-political events such as the threat could send the market down as it did over the weekend.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. They do not represent the views of The Economic Times)

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