The cryptocurrency community is preparing for the upcoming Bitcoin halving event, expected to take place this weekend. The specific dates for the halving event are not fixed but generally occur approximately every four years. As per current estimates, the next halving is likely to happen either late Friday or early Saturday.

Bitcoin halving involves a fundamental change in the blockchain technology of Bitcoin, with the aim of reducing the rate at which new bitcoins are generated. Bitcoin, created by the anonymous entity Satoshi Nakamoto, is designed to have a limited supply of 21 million tokens.

This upcoming halving will be the fourth in Bitcoin’s history. The first halving in 2012 reduced the reward from \(50 to \)25. The most recent halving will further decrease the reward to \(3.125, approximately \)200,000 at the current price of Bitcoin at $64,000 as of April 19.

The halving process will continue until 2041, by which time all Bitcoins will have been mined. However, this particular halving event is expected to be different from previous ones due to recent geopolitical tensions between Iran and Israel, leading to market instability. Consequently, Bitcoin saw a significant decline, dropping to its lowest level in a month, with a 5.5% decrease to $59,961 during Friday’s Asia session.

“In the long term, this reduction in supply could attract more institutional and retail investments, enhancing Bitcoin’s stock-to-flow ratio. ZebPay is optimistic about both the short-term and long-term prospects for Bitcoin and the broader crypto market,” stated Rahul Pagidipati, CEO of ZebPay.

Experts suggest that the halving event may impact Bitcoin’s price due to increased scarcity, potentially driving prices up and drawing new investors to the crypto market. Historically, Bitcoin often experiences a notable surge around 60 days before the halving, leading to new all-time highs. This trend has been consistent in previous cycles, such as in 2016 and 2020.

Following the rally, there is typically a retracement period occurring approximately 28 to 14 days before the halving. This trend was evident in the 2020 cycle with a 19% retracement and in the 2016 cycle with a more significant retracement of up to 40% when considering downside wicks.

Rajagopal Menon, VP at WazirX, mentioned, “After the halving, Bitcoin usually enters a phase of sideways movement, termed reaccumulation, around old all-time high levels, setting the stage for the next significant price surge. Historical data indicates that post-halving reaccumulation is followed by a parabolic price increase. This trend is observable in discussions following the 2020 halving, where a substantial upward movement succeeded the halving and reaccumulation phases.”

Menon also noted, “The prevailing belief is that prices are likely to rise due to the supply shock, but geopolitical events like the recent threat could lead to market downturns as seen over the past weekend.”

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