The much-anticipated event in the history of bitcoin took place yesterday. The event is what miners refer to has bitcoin halving, and the third of its kind took place yesterday.
The second halving which was the last before the one that took place yesterday happened on July 9, 2016.
halving is an event that occurs every four years when the rewards for mining each block on the bitcoin network would be reduced by half.
The third halving reduced the reward from 12.5 to 6.25, and it has been predicted that this occurrence would continue until the total number of the cryptocurrency that exists is exactly 21 million.
Halving was programmed with bitcoin to control inflation in the bitcoin market and preserve the value of bitcoin itself.
The event that took place yesterday, increased the price of bitcoin by 2.19% which moved the price of 1BTC to $8,759 USD.
This increase was a comfort to bitcoin traders and investors after days of losses due to the drastic decrease in the price of bitcoin in the last four days before the halving.
The increase in the price of the cryptocurrency as a result of the halving didn’t come with many surprises, as it was well predicted and expected based on similar occurrences after previous halving events.
Investors are still much doubtful of whether the price would increase or decrease as the price seems to remain volatile. And the increase that happened as a result of yesterday’s event didn’t even push it to what the price was last week when 1BTC sold at $10,000 USD.
Rich Rosenblum, the co-head of trading at crypto market maker GSR wrote in an email, “It’s likely that we are going to see increased volatility through may, with the pandemic, ongoing stimulus, and the halving.
The record open interest for futures and options at multiple exchanges adds to this. The market is in a state of information and position overload, exacerbating the potential for volatile moves”
Analysts have therefore advised that we keep our fingers crossed and watch as it all unfolds.