Bitcoin’s halving event is approaching, estimated to occur around April 20 at 9 a.m. UTC, reducing miner rewards from 6.25 BTC to 3.125 BTC per block.
Halvings occur approximately every four years, reducing miner rewards by 50% while they earn transaction fees. The upcoming halving will be the fourth, with 21 million bitcoins expected to be mined by 2140.
Ahead of the halving, Bitcoin’s mining difficulty rose by 3.9%, hitting an all-time high. This increase suggests miners are boosting their hash rate to adapt to reduced rewards. The hash rate reached a seven-day average of 629.75 EH/s before the difficulty adjustment. Despite miner revenues growing due to Bitcoin’s price increase, the halving’s impact on less efficient miners is uncertain.
Historically, Bitcoin halvings have influenced price fluctuations and often heralded bull markets. Analysts note price surges typically occur one to three months and nine to twelve months after previous halvings.
However, the sample size is limited, and other factors contribute to price movements. Market data indicates rising implied volatility for near-term options, hinting at possible market volatility.
While new U.S. spot bitcoin ETFs have attracted $12.6 billion in inflows, suggesting a positive price impact post-halving, analysts caution against potential market flooding in a bearish scenario.
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