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Monday, May 27, 2024
Monday May 27, 2024
Monday May 27, 2024

Bitcoin halving: World’s biggest crypto reaches supply milestone, trades over ₹58 lakh

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Bitcoin’s halving event sees prices stabilize after reaching an all-time high, as experts weigh in on its impact

Bitcoin, the world’s leading cryptocurrency, underwent a programmed reduction in its new coin creation rate on April 19. This event, known as a “halving,” occurs roughly every four years and is designed to slow down the overall supply of Bitcoin as per CoinGecko.

Following the halving, Bitcoin’s price remained relatively stable, experiencing a slight dip of 0.47 per cent to settle at ₹58,89,117 on Wazirx.

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The event was highly anticipated by cryptocurrency enthusiasts who believe it will solidify Bitcoin’s value as a scarce asset. Bitcoin’s founder, Satoshi Nakamoto, capped the total supply at 21 million coins.

The Bitcoin halving comes after a period of significant price fluctuations for Bitcoin. In March 2024, Bitcoin reached an all-time high of USD 73,803.25 but has since fallen back somewhat. The broader cryptocurrency market has also been buoyed by the recent approval of spot Bitcoin ETFs in the United States and the expectation of lower interest rates.

Andrew O’Neill, a crypto analyst at S&P Global, expressed scepticism about drawing direct price predictions from previous halvings, noting that various factors influence price movements.

Ahead of the event, JPMorgan analysts expected Bitcoin’s price to fall post-halving as it was “overbought” amid tepid crypto funding. However, Parth Chaturvedi, Investments Lead at CoinSwitch Ventures, suggested that the decoupling of crypto as a new asset class could lead to increased investor interest.

“Broadly prices are lower from their recent highs due to geopolitical tensions, but we can expect near-term downward pressure as Miners and ecosystem participants adjust to the new supply dynamics,” Chaturvedi added.

Bitcoin halving is a pre-destined event written into Bitcoin’s code that happens roughly every four years. It cuts the reward miners get for verifying transactions in half, thereby slowing down the rate at which new bitcoins enter circulation. This mimics scarcity in precious metals, potentially increasing Bitcoin’s value over time as demand remains steady or rises.

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