Bitcoin experienced a 1.5% increase over the last 24 hours following the successful completion of the fourth Bitcoin (CRYPTO: BTC) halving event, signifying a notable reduction in miner rewards. The event, which occurs every 210,000 blocks, has seen the reward for mining a block drop from 6.25 BTC to 3.125 BTC.
What Happened: The fourth Bitcoin halving event, a programmed process in the Bitcoin protocol, has taken place after the 840,000th block was mined. This event, which occurs approximately every four years, is designed to manage scarcity and regulate the inflationary supply of Bitcoin.
As a result of the halving, Bitcoin miners will now receive 3.125 BTC per mined block, down from the previous 6.25 BTC. This process effectively slows down the rate at which new Bitcoin is created. The last three halvings occurred in 2012, 2016, and 2020, leading to significant drops in mining rewards over time.
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Despite short-term predictions of price volatility within the crypto community, there remains optimism about the long-term potential of Bitcoin’s price. Billionaire investor Tim Draper believes that the halving is going to help push Bitcoin's price up to "$250,000 or more," a forecast he has consistently proclaimed, particularly in 2022.
“The Bitcoin halving is a pivotal event that historically signals a shift in the market, usually initiating a bullish trend over the following months. As we approached the fourth halving, the anticipation built, suggesting a continued—if slightly more subdued—upward trajectory,” M2 CEO Stefan Kimmel told Cointelegraph.
Why It Matters: Cryptocurrency markets surged on Friday, with a 47.5% spike in total crypto liquidations reaching $258.7 million and a more than double increase in total exchange inflows, as investors eagerly awaited the Bitcoin Halving.
The global cryptocurrency market cap now stands at 2.35 trillion, up 4.7% in the past 24 hours. In the same period, 84,226 traders were liquidated, with total liquidations amounting to $257.93 million, on late Friday.
Price Action: At the time of writing BTC was trading at $63,914, gaining 0.7% in minutes after halving, according to Benzinga Pro.
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