The much-anticipated Bitcoin software update known as the “halving” has been successfully implemented. As of 8:10 p.m. on Friday, New York time, data from analytics platforms like mempool.space and Blockchain.com confirmed the completion of this significant modification.
The halving event, which reduces the rewards for mining new blocks by half, is generally viewed as a positive indicator for the cryptocurrency’s value. Despite the prevailing optimism, Peter Schiff presents a contrasting viewpoint that urges caution.
Peter Schiff, a well-known Bitcoin skeptic and gold advocate, cautions against overly optimistic expectations regarding the halving’s impact on price. He suggests that the halving might not necessarily lead to the anticipated price surge. Schiff warns that Bitcoin holders could potentially see a reduction in their net worth, implying a decrease in price.
In a tweet, Schiff remarked, “Congratulations, Bitcoiners, on the Halving. Are you guys commemorating this occasion by throwing parties tonight? I haven’t been invited to any. I think halving is an appropriate name for what’s happening as soon Bitcoin hodlers experience a halving of their net worths.”
Leading up to the halving, on-chain analytics firm IntoTheBlock pointed out the historical trend of Bitcoin price performance post each halving, indicating a typical bullish trend lasting approximately a year.
Additionally, data shows that miners’ BTC holdings hit a 12-year low before the halving, suggesting that miners were predominantly selling their holdings.
On another front, there are indications that Bitcoin whales have initiated buying during the recent dip. On April 18, major Bitcoin holders, owning more than 0.1% of the total supply, acquired 19,760 Bitcoins at an average price of $62,500. Historically, such accumulations by these addresses have often preceded price increases in Bitcoin.
At the time of this report, Bitcoin’s value had decreased by 2.17% over the last 24 hours, trading at $63,738 as investors capitalized on profits following the halving event.
This article was originally featured on U.Today