Subscribe

Subscribe to Our Newsletter

Success! Now Check Your Email

To complete Subscribe, click the confirmation link in your inbox. If it doesn’t arrive within 3 minutes, check your spam folder.

Ok, Thanks
Crypto Business

Bitcoin trading settles down after 'halving' volatility

The Curator profile image
by The Curator
Updated
Bitcoin trading settles down after 'halving' volatility

Bitcoin trading has seen a volatile few days as the hotly anticipated 'halving' event this weekend.

It is the fourth halving event for the cryptocurrency, and in effect it has reduced the reward for mining each new block blocks from 6.25 bitcoins to 3.125.

Halving aims to decrease the number of new bitcoins entering circulation, which is done by design to preserve the cryptocurrency’s value over time.

Previously, in Bitcoin's history to date, these events have caused a reduced supply of new Bitcoins and as a result led to a rise in Bitcoin's price due.

In this instance, however, the actual market response remains to be fully seen.

In practice it also reduces the economic return for Bitcoin 'miners' which will now receive fewer Bitcoins for the same amount of computer processing work. It comes after a period in which higher energy costs, and tighter availability of computing resourcing amidst burgeoning AI use, have already impacted the sub-sector significantly.

Also, it comes after trading interest in Bitcoin has spiked albeit though packaged exchange traded products - like ETFs - after long awaited regulatory approval in the United States opened the door to crypto for large scale institutional investors.

Following the halving, analysts and market watchers are following the Bitcoin market very closely.

Explore Bias

Some media outlets are focused on the immediate, near real time, volatility - i.e. a price surge and heightened transaction fees - which may potentially give a more exaggerated view of the impact that the halving event has had.

Other reports take a more zoomed out, slightly longer term, view of the reaction to the changes whilst discussing both the potential for price increases and the challenges for Bitcoin miners.

Crypto market specialists provide a more contextual insight, discussing prior halving events and the built-in evolution of the cryptocurrency.

Mainstream media reporting of crypto can tend to be more skeptical and reactionary when discussing Bitcoin trends.

The Curator profile image
by The Curator
Updated

Read More