Is the Bitcoin Halving Already Priced in?
The crypto market is preparing for the next bitcoin halving event which is only a few days away. This important event which is going to take place on April 20, is a program feature of the Bitcoin network that occurs approximately every four years.
Rewards for the miners will drop from 6.25 to 3.125 Bitcoin per block with the coming halving meaning that the rewards are cut in half. However, miners will be able to earn additional transaction fees for each block mined as usual.
Historically, Bitcoin halvings have been associated with significant price fluctuations in the price of Bitcoin. Although there isn't a clear cause-and-effect link, these occurrences frequently happened ahead of notable bull runs in the Bitcoin market.
Every time this happens, people ask whether Bitcoin's halving is "priced in." One data point, though, seems to indicate that this time it's "priced in."
According to David Duong and David Han, Coinbase analysts, this is the first time Bitcoin has experienced an all time high before the halving which could mean that the halving effect has already been priced in by experienced traders.
However, there still is a collective belief that the halving could push prices up according to analysts that could lead to behavior resulting in rally.
As noted by analysis firm Kaiko, the dynamics of Bitcoin's supply and demand have changed significantly as a result of the approval of spot ETFs that could affect the price during and after the halving.
This is not an investment advice.
Hive: @haveyoursay
X: www.x.com/newsintercept
Website: www.newsintercept.com
Posted Using InLeo Alpha