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Bitcoin (BTC-USD) is poised to decline by 4.4% weekly as traders prepare for the highly anticipated halving event, scheduled for later on Friday.
The halving event, occurring every four years, involves cutting BTC miners’ rewards for validating transactions in half, thereby reducing the rate of new token creation by 50%.
Brady Swenson, co-founder of Swan, a Bitcoin (BTC-USD) financial services company, emphasized the significance of the event, stating, “It’s pretty simple: fixed supply, new issuance of bitcoin cut in half, demand and utility rising. Buy Bitcoin regularly, hold with a long-term horizon, and you’ll probably be happy you did.”
Throughout the past week, the world’s oldest digital currency remained below \(70K and briefly dipped below the \)60K mark on Wednesday for the first time since early March. This dip was attributed to increased volatility leading up to the halving event.
On Friday, Bitcoin (BTC-USD) experienced another brief drop below $60K following reports of Israel launching a retaliatory strike against Iran, but it swiftly recovered lost ground.
Deutsche Bank noted that the halving event’s impact is already partially factored into the market. Looking forward, they anticipate sustained high prices driven by expectations of future spot Ethereum (ETH-USD) ETF approvals, potential central bank rate cuts, and regulatory adjustments.
Furthermore, the research firm foresees a shift in the geography of crypto mining post-BTC halving, with miners seeking cheaper and more reliable energy sources due to the reduced block reward. Regions like Latin America, Asia, Africa, and the Middle East are gaining traction among crypto miners due to their lower energy costs.
Contrary to popular belief, J.P. Morgan does not anticipate a post-halving increase in BTC prices, as they believe the event’s impact has already been priced in and foresee a potential downside instead.
Notable News
- Kraken, a cryptocurrency exchange, is acquiring TradeStation Crypto, the digital assets unit of TradeStation Group, as part of Monex Group (OTCPK:MNXBF), in a move to enhance its regulatory licensing in the U.S.
- Bitdeer Technologies (BTDR) stock received a Buy rating from Needham, with analyst John Todaro highlighting the company’s resilience in navigating the challenges posed by the bitcoin (BTC-USD) halving event, citing diversification benefits.
Bitcoin and Ether Price Update
At 3:01 pm on Friday, Bitcoin (BTC-USD) saw a 1.8% increase to \(64.2K, while Ether (ETH-USD) rose by approximately 0.9% to \)3.1K
For more insights on the upcoming halving event, continue reading here.