Bitcoin's halving event was completed, but the price remains steady for how long? Read on to learn more
Bitcoin, the largest-held cryptocurrency, on April 20 morning underwent its "halving," a process that occurs roughly every four years. This event to reduce new Bitcoin issuance marks a new milestone for Bitcoin, the cryptocurrency whose dominance is currently 54.14 per cent up 0.12 per cent in the last 24 hours, as per Coinmarketcap data.
Following the halving, Bitcoin's price experienced a slight dip but remained stable compared to former predictions. Bitcoin's price dipped slightly over 1 per cent to settle at USD 63,643, as per Coinmarketcap data at 3.30 pm today. Market analysts had earlier anticipated a surge in Bitcoin's price due to supply-demand dynamics after BTC became scarce.
Bitcoin halving occurs every four years, to reduce the rate of new Bitcoin issuance. This can create a supply-demand mismatch, which is expected to increase prices, according to analysts. However, JP Morgan's experts predict that the price of bitcoin will fall after the halving due to being "overbought" and the subdued venture capital funding for the crypto industry this year.
Mohammed Roshan Aslam, CEO & Co-founder, GoSats, said that Bitcoin’s price might tank more owing to macroeconomic events around the world, but feels it to be a wonderful opportunity for long-term investors. “Bitcoin remains a more accessible investment avenue than gold, equity and real estate since it’s traded completely digitally. While it's true that Bitcoin is witnessing a sharp downturn ahead of the halving, we have to keep in mind that the usual surge that we have witnessed following Bitcoin halving events in the past, might not happen this time," Aslam said.
"BTC has already surged 48 per cent since the beginning of the year and with several macroeconomic aspects influencing the price action, there is room for it to decrease as much as 40 per cent and 50 per cent. However, this can be an opportunity for long-term investors, who understand it well that BTC remains undervalued and has the potential to go north of USD 100,000 with reduced volatility,” he added.
Bitcoin's scarcity plays a pivotal role in its valuation, as the total supply of Bitcoins is capped at 21 million. However, investors should be cautious given Bitcoin's volatility in history and its value hugely dependent on a speculative nature.
Bitcoin's price skyrocketed from USD 28,123 in October 2023 to USD 73,794 by March 14, 2024, its all-time high. Despite Bitcoin's rise in price, trade volumes in India lag behind other countries which experts attribute to high taxes imposed on crypto trades in India.