- Bitcoin miners can only extract 3.125 BTC per block, roughly an issuance of 450 Bitcoin in a day.
- Bitcoin supply slumped from around 1.8% annually to about 0.9%.
The fourth Bitcoin halving event has made its mark in history, as BTC issuance has dropped below the gold mining rate of about 2.3%. A recent analysis by Banklesstimes.com revealed this.
The site CEO, notes:
BanklessTimes CEOThe slump in Bitcoin’s issuance rate below gold cements Bitcoin’s status as a scarcer asset, promoting the narrative that digital currencies are escalating in value and investor priority.
The BTC Halving Event
For months before its start, the BTC halving event sparked immense hype and excitement in the Bitcoin community, attracting a flurry of budding investors. Thanks to all the hype, Bitcoin reached a historic high of about $73,700 in March 2024 before gradually dropping in April.
This Bitcoin halving event, however, did raise many expectations. Considering the 2020 halving event, prices increased from $9,500 to $65,000, hinting at higher prices in future halving events. However, some experts pegged the price soar to the pandemic lockdown and economic downfall then.
But while most analysts expected a substantial surge with this year’s halving, other analysts predicted no significant price change after the all-time high in March.
So far, there’s not much to unravel, with the Bitcoin price settling at $64500 by April 24th.
However, some analysts still expect an upward surge in the coming months. The halving event in 2028 will likely result in more price fluctuations, with 1.625 BTC as computational rewards.
The Future of Bitcoin
It’s becoming evident that Bitcoin is increasingly trading like a regular stock. It is now more susceptible to reacting normally to market forces—such as geopolitical tensions between Israel and Iran—than individual traders buying or selling the cryptocurrency. While there’s not much change with Bitcoin prices, some analysts are still clinging onto a post-halving surge, expecting BTC prices to soar even higher after the event’s end. In an April 8 report, analysts from cryptocurrency exchange Bitfinex predicted Bitcoin’s price would soar about 160% in the 12 to 14 months after this year’s halving, which they said could push Bitcoin to a new high of more than US$150,000.
While these predictions rave on, one thing is certain: the appeal of digital currencies is increasing even as investors stop to explore them and invest.
