Bitcoin Price Prediction as ‘Bitcoin Halving’ Executes Successfully – Will a New Bull Market Start Now?
Bitcoin, currently trading at $63,999 with a 3.50% increase post-halving, introduces a supply squeeze that might kickstart a new bull market.
The event cuts the mining reward from 6.25 to 3.125 bitcoins, underpinning Bitcoin’s strategy to cap its total supply at 21 million coins.
While the halving aims to increase scarcity and potentially boost prices, the immediate market reaction has been subdued, with Bitcoin stabilizing around $64,000.
Bitcoin Halving: A Supply Squeeze Shakes Up the Market
The fourth Bitcoin halving took place late Friday at block height 840,000, marking a pivotal change in the cryptocurrency’s supply dynamics. This event, occurring approximately every four years, reduces the mining reward from 6.25 to 3.125 bitcoins.
Such reductions are part of a predefined strategy to limit the total supply of Bitcoin to 21 million, enhancing its scarcity by halving the influx of new coins into circulation.
The Bitcoin network completes the fourth-ever ‘halving’ of rewards to miners https://t.co/2ZoDt4k69b
— CNBC (@CNBC) April 20, 2024
Despite the potential for a supply squeeze to elevate prices, the immediate market reaction was understated, with Bitcoin’s price stabilizing around $64,000.
This muted response might stem from the halving already being factored into the price, reflecting a more sophisticated market understanding compared to earlier halvings.
The halving reduces the mining reward, thus tightening Bitcoin’s supply.
Immediate market reaction has been calm, possibly due to pre-event pricing adjustments.
Long-term effects remain uncertain, although historical trends suggest possible price increases.
While it is too soon to determine the long-term impact of this halving, historical trends have shown significant price rallies following such events. However, whether this pattern will repeat remains to be seen, as each halving unfolds under unique market conditions.
Bitcoin Halving 2024: Miner Rewards Cut Sparks Surge in Mining Stocks
The Bitcoin halving on April 20, 2024, significantly altered the compensation landscape for Bitcoin miners by slashing the block reward from 6 BTC to 3.125 BTC. This pivotal event, which occurs roughly every four years, drastically impacts the economic viability of mining activities.
Leading up to the halving, anticipation fueled a rise in the stock prices of major Bitcoin mining firms, reflecting investor speculation about which companies would adapt best to the new reward structure.
Notable firms like Riot Platforms (RIOT) saw their stock prices increase by over 10%, with similar gains observed in other prominent companies such as Marathon Digital (MARA) and Clean Spark (CLSK).
Bitcoin in half, directly affecting profitability.
Impact on stock prices: Mining firms on the Nasdaq experienced substantial stock price increases due to pre-halving speculation.
Operational adjustments: Mining companies are compelled to refine their strategies, often by expanding operations to mitigate the impact of reduced rewards.
Post-halving, mining operations must enhance their efficiency and possibly seek additional capital to stay competitive.
Historical trends suggest that although total miner revenue typically drops shortly after a halving, it tends to recover over the year as Bitcoin’s price potentially increases and larger mining operations expand.
Bitcoin Price Prediction
Bitcoin (BTC/USD) ‘s immediate resistance lies at $67,329, with further barriers at $69,232 and $71,425, which could cap potential gains.
Conversely, Bitcoin finds immediate support at $63,045, with additional lower thresholds at $61,387 and $59,686 that could offer a fallback in case of declines.
The Relative Strength Index (RSI) stands at 51, indicating a neutral market sentiment.
Bitcoin Price Prediction
Notably, a downward trendline near the pivot point of $65,214 suggests resistance; thus, remaining below this mark could maintain bearish pressures.
However, a breach above this level could shift momentum favorably for Bitcoin, pointing towards a more bullish stance.
Act Fast to Buy Dogeverse Before Imminent Price Hike
Dogeverse, a meme coin making waves across multiple blockchains including Ethereum, BNB Smart Chain, Polygon, and soon Solana, Base, and Avalanche, has almost reached its presale target. The initiative has collected an impressive $8,419,840.15, nearing its soft cap of $8,832,636.
With the price currently at $0.000299, a price increase is on the horizon in just over a day. This expansion into diverse blockchain ecosystems aims to blend the widespread charm of Doge with superior blockchain functionalities.
For more updates and community engagement, visit Dogeverse’s official Twitter and Telegram channels.
The post Bitcoin Price Prediction as ‘Bitcoin Halving’ Executes Successfully – Will a New Bull Market Start Now? appeared first on Cryptonews.
