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Bitcoin Barely Bobbles After Halving

2024-04-20 08:56:11

The oldest and largest blockchain ticked over into its 840,000th block shortly after midnight UTC on Saturday morning, kicking off April 20—yes, 12:10 a.m. on 4/20—triggering the latest Bitcoin halving. Despite all the hype and anticipation, the price of BTC held steady.

BTC was priced at $63,976 when the pivotal block was minted, according to CoinGecko data, netting a 1% gain over the previous 24 hours. Half an hour later, it was essentially unchanged at $63,873.

The ultimately wan effect of the long-planned and closely-watched event follows a rollercoaster few days—including a steep drop in the Bitcoin price to $59,573 on one major exchange late yesterday, followed by a decent recovery back above $65,000 hours later—and a largely discouraging past month.

Just yesterday, JP Morgan opined, “We do not expect Bitcoin price increases post-halving as it has already been priced in.” The firm was at least half correct.

The milestone, which slashes in half the rewards given to Bitcoin miners for generating each new block, is aimed at tempering block creation and directly affects mining firms, mining pools, and scrappy independent miners. But crypto watchers are also invested in the outcome, laser focused on the potential impact the event will have on the price of BTC.

Bitcoin had set a new all-time high last month, breaking past $73,000, part of a widely celebrated Bitcoin bull run that some said showed uncommon strength, albeit unseasonably early. But the coin soon fluttered downward, a trend blamed on factors ranging from discouraging U.S. economic metrics to a surge of unrest in the Middle East.

On the eve of the halving, countless questions lingered.

Analysts debated whether the latest bull run was already over, and environmentalists asked if the diminished reward would lead to less mining and thus better environmental conditions.

Was the halving already priced in? Would the value of Bitcoin drop after this moment, as it typically has, but ultimately soar to new heights? Maybe, experts said.

Less than an hour past the Bitcoin halving, the near- and long-term price impact of the event has yet to be seen. For now, as mainstream financial markets enjoy their weekend break, the crypto community is largely jubilant and hopeful.

The impact on Bitcoin miners will likely be more tangible. After all, the initial reward for generating a block was 50 Bitcoin. Until this most recent halving, the bonus was 6.25 BTC. For the next four years, or 210,000 blocks, the reward is 3.125 BTC. A lot can change in one day, and anything goes looking ahead to 2028.