The Third Bitcoin Halving Finally Strikes As BTC Price Stays Around $8600 Levels
The much-awaited Bitcoin Halving event for 2020 is finally here creating a new milestone in the Bitcoin blockchain’s history. This is for the third time the Bitcoin network had undergone a halving event thereby reducing the miner rewards to half.
On May 11 at 19:23 UTC, Bitcoin miners rushed to compete for the newly minted Bitcoin added to the network through the 630,000th block. The Bitcoin halving is a programmed event triggered for every 210,000 blocks mined or you can say roughly four years.
As per reports, the final block before mining with 12.5BTC mining rewards was mined by f2pool and contained the following message “NYTimes 09/Apr/2020 With $2.3T Injection, Fed's Plan Far Exceeds 2008 Rescue”.
Well, the Bitcoin enthusiasts have always been vocal about how the traditional markets have failed investors over the time. In fact, the birth of Bitcoin was itself the outcome of the 2008 financial crisis.
The first block after yesterday’s Bitcoin halving, with renewed mining rewards of 6.25 BTC, was mined by China’s Antpool.
Historically, Bitcoin halving is always considered a positive event for Bitcoin investors. Bitcoin price usually surges before and after the halving as the reduced mining rewards creates a scarcity among the miner community and triggers more purchases.
Well, if you the past price points, during the first Bitcoin halving, it was trading for $12, during the second Bitcoin halving, the BTC price was around $650 and during the third Bitcoin halving, BTC was trading $8550. This can be enough for you to determine what could be the possibly BTC price during the next halving in 2024.
At press time, BTC is trading at a price of $8693 with a market cap of $159 billion. So far in 2020, BTC has shown volatile price movements with a low below $5000 and a high above $10,000. At its current price, BTC trades at around 20% premium year-to-date.
Some analysts have argued that with the latest Bitcoin halving, the incentive for miners have gone very low. On the other hand, with the mining costs increasing, this could be discouraging for miner to continue their operations further. so there’s every possibility that we can see a short term pressure on the BTC price.
On the other hand, analysts are very much hopeful that in the long-term, BTC could be valuable investment giving handsome returns to investors. Besides, with the current economic scenario, many big hedge fund managers are looking at BTC as a potential hedge to the collapsing global economy.