Bitcoin approaches critical ‘halving’ event

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19th April 2024 – (London) Bitcoin enthusiasts are on the edge of their seats as the cryptocurrency approaches its much-anticipated ‘halving’ event, scheduled to occur in the early hours of Saturday GMT. This significant modification in Bitcoin’s protocol is set to halve the rewards given to miners, effectively making it more costly to produce new bitcoins.

This event, which transpires roughly every four years, is a cornerstone designed by Bitcoin’s enigmatic creator, Satoshi Nakamoto, to control inflation by limiting the pace at which new bitcoins are generated. The total supply of bitcoins is capped at 21 million, a feature that supporters argue enhances its value as a finite resource.

Chris Gannatti, Global Head of Research at WisdomTree, stressed the importance of the event, describing it as “one of the biggest events in crypto this year.” Such halvings have historically led to vigorous debates within the financial community, with some investors predicting significant price rallies post-halving, while others, including analysts at JP Morgan, remain sceptical, suggesting that any potential price increase may have already been factored into the market.

The anticipation builds against a backdrop of a recent surge in Bitcoin’s price, which reached a record high of US$73,803.25 in March after a prolonged recovery period throughout 2023. However, the current trading price hovers around US$63,800 amid varying global economic signals and regulatory developments, including recent approvals from the U.S. Securities and Exchange Commission for spot bitcoin exchange-traded funds.