Bitcoin Value Increases Following Conclusion of ‘Halving’ Event
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On Saturday, Bitcoin saw an uptick in its value following its recent halving event, which significantly decreased the digital currency’s rate of new issuance.
Over the last day, the valuation of
Bitcoin
has escalated by 1.1%, reaching $65,351. This is a positive leap from its earlier weekly figures, hovering around $60,000. The price change occurs amid heightened inflation fears, uncertainty surrounding interest rates, and geopolitical tensions between Israel and Iran.
The halving, enacted late Friday, is a programmed alteration in Bitcoin’s supply mechanism meant to reduce issuance amidst rising demand, especially with the recent endorsement of new Bitcoin-based ETFs. Even before this event, the price of Bitcoin saw more than a 50% increase this year, although it still hasn’t reached its peak of nearly $74,000 recorded in mid-March.
Brian Vendig, the President of MJP Wealth Advisors, has suggested that while previous halvings have positively impacted Bitcoin prices, the current circumstances suggest that any surge in value following this latest halving may be limited considering the substantial gains already experienced this year.
According to Vendig, the introduction of spot Bitcoin ETFs adds a new layer of complexity to the market which was absent during past halvings. He notes that such financial instruments have stoked both demand and interest in Bitcoin lately.
Enthusiasts of cryptocurrency are optimistic that the latest halving will propel Bitcoin to new heights this year. Previous halvings in 2012, 2016, and 2020 were followed by robust performances. CoinDesk highlights that the previous halving in May 2020 propelled Bitcoin’s price from about $9,500 to $65,000 the following year.
Thomas Perfumo, Kraken’s Head of Strategy, indicates that traditionally, Bitcoin prices peak between 12 to 18 months post-halving. He acknowledges that Bitcoin recently recorded an all-time high unusually early in this cycle, and suggests that the market may be maturing faster, yet the cycle is likely far from over.
Beyond Bitcoin, other cryptocurrencies have also seen gains.
Ether
, the second most valued crypto, increased by 2.3% to $3,144, while
Solana
and
Ripple
are also up. The meme coin market has responded positively too, with
Dogecoin
and
Shiba Inu
experiencing a surge of 7.1% and 14% respectively.
Reach out to Joe Woelfel via email at joseph.woelfel@barrons.com
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