Bitcoin (BTC)Crypto News

Bitcoin is now halfway to its next halving as a hashrate marked ATH

Bitcoin has crossed the midline of its third halving, which the community sees as a bullish sign for its price as the issue price is reduced by 50%.

Less than 105,000 blocks from the next halving

After block 735,000 was mined by Poolin on Thursday, yielding 0.16215354 BTC ($6,402.45) in fees, Bitcoin officially entered the second half of the third halving cycle. This one – like everyone else in the past or future – has 210,000 blocks to mine, and half of those, 105,000 blocks, have been mined since May 11, 2020.

After the next halving, currently scheduled for the second quarter of 2024, Bitcoin’s supply rate will drop by 50%, likely causing another “supply shock.” Currently, about 90% of the 21 million BTC has been mined, and less than 7% of the total supply will be available when the network launches its fourth halving cycle in two years.

Another notable factor is the mining hash rate, which ATH reached 249.1 exahashes per second (EH/s) on Wednesday, just before the second phase of the cycle ended. Since then, the metric has trended lower as the crypto sell-off deepened. Higher hash rates indicate more computing power needed by miners. As a result, the network itself has become more secure.

impact on price

According to Bitcoin’s system, the next halving – which aims to reduce the number of rewards of each block by half – will take place in two years. As a result, bitcoin miners who receive BTC for validating on-chain transactions only receive 3,125 BTC for each block they mine.

By studying the history of Bitcoin Analysts generally agree that violent upward price moves would normally occur after each halving. After the last May 2020 entered the primary cryptocurrency soon in a month long bull market 1, broke the 2017 ATH setback and later reached the $60,000 price level multiple times in the past year.

The halving is often interpreted as a bullish price signal, as a so-called “supply shock” could push the asset much higher than before due to the reduced issuance of new coins.

Source: Crypto News Deutsch

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