The halving will see the block subsidy halved, from 6.25 to 3.125 Bitcoin. What does it mean?
Bitcoin halving is an automated process of halving the Bitcoin that miners receive as a reward for creating a block. It was created to encourage proof-of-work mining. Every certain number of blocks, the emission must be reduced by half.
The next Bitcoin halving is scheduled to occur in 2024. This event occurs every 210,000 blocks mined, which generally takes about four years. During the halving, block reward for Bitcoin miners is halvedmeaning fewer new Bitcoin coins are issued to the market.
“Bitcoin Halving May Have No Effect on Bitcoin Price”, operators said. “It could well be a coincidence that halvings have been aligned with global liquidity cycles“, they added, arguing that on this occasion the pattern that the halving brings with it a price increase could not be met.
“This is simply a warning that, starting in 2023, We don’t have enough information to conclude one way or another whether the halvings will lead to price increases. After all, people, and therefore markets, can be emotional,” the traders explained.
We must not forget that Bitcoin was only launched in 2009, with the genesis block mined two months before the stock market bottomed in March of that same year.
Next came a bull market of historic scale and longevity, with near-zero interest rates and a perfect environment for risk assets. Bitcoin had never experienced a bear market in the broader economy before, meaning we had no idea how it would trade when that day came. In 2022 we find out.
Source: Ambito
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