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The long-awaited fourth Bitcoin halving finally occurred after the release of block number 840,000 for BTC. This event holds significant importance as it is expected to have various impacts on the Bitcoin ecosystem and the cryptocurrency market's future.
What Happens After Bitcoin Halving
Bitcoin halving drastically reduces the miner rewards for each mined block, from 6.25 BTC to 3.125 BTC. This means Bitcoin miners' income will decrease by 450 BTC, compared to the previous 900 BTC before the fourth halving. NewsBTC anticipates this development could have a staggering impact on their operations, reporting potential losses of up to $1 billion post-halving.
While the halving's impact may not be pleasant for Bitcoin miners, it's considered necessary for the development of the Bitcoin ecosystem. It results in Bitcoin (BTC) deflation by reducing the circulation speed of more tokens. This may make the flagship cryptocurrency scarcer, ultimately driving up its value, as it has done in the past three halvings.
Given the expectation of history repeating itself, cryptocurrency analysts and experts have made various predictions about the post-halving surge in Bitcoin's price. So far, the most optimistic price prediction remains that of Samson Mow and Bitcoiner CEO, who forecast the leading cryptocurrency could rise to $100,000 this year.
He further added that considering the expected continued demand for Bitcoin to surpass its supply, such unprecedented price surges are possible. Institutional investors recently accessed Bitcoin through a spot Bitcoin ETF. The imbalance between Bitcoin supply and demand is also a reason why cryptocurrency analyst MacronautBTC believes Bitcoin could rise to $237,000.
Billionaire Tim Draper also agrees that Bitcoin can reach such heights, based on his prediction of $250,000 by 2025, marking a significant rise in the flagship cryptocurrency's price.
Impact on the Broader Cryptocurrency Market:
Cryptocurrency analyst Michaël van de Poppe recently predicted a narrative shift after the halving. He expects Bitcoin to take several months to consolidate, while altcoins will surge during this period. This is reasonable considering Bitcoin has not undergone parabolic price increases until around six months post-halving.
During this time, altcoins like XRP and Cardano (ADA), which have so far performed poorly, will be closely watched by investors to see if they show any signs of bullish momentum. Ethereum (ETH) will also be a focus of many in the crypto community as they observe how the second-largest cryptocurrency by market cap performs during Bitcoin's consolidation.
Interestingly, Van de Poppe predicts the narrative will shift towards Ethereum and projects in the DeFi (Decentralized Finance) and Real World Asset (RWA) sectors. Therefore, such projects are also worth watching. |
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Post time 29-4-2024 07:38:52