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InicioNewsCrunch Time: Bitcoin Halving Approaches, Will BTC Hit $100,000 or Plunge to...

Crunch Time: Bitcoin Halving Approaches, Will BTC Hit $100,000 or Plunge to $50,000?

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  • Past halvings spurred significant price surges: 8,069% in 2012, 284% in 2016, and 559% following 2020.
  • Critics question Bitcoin’s volatility and utility despite past gains; prices remain 17% below the all-time high.

The upcoming Bitcoin halving event, scheduled for this Saturday, is anticipated to significantly reduce the daily supply of new bitcoins available from 900 to 450. This reduction is part of a predefined schedule set every four years to limit the total supply of Bitcoin, thereby preserving its value over time.

Historically, such events have led to notable increases in Bitcoin’s market price. Following the 2012 halving, Bitcoin’s value surged by 8,069% within a year. Similarly, the crypto experienced gains of 284% and 559% after the 2016 and 2020 halvings, respectively. These trends reflect basic economic principles where reduced supply, coupled with steady demand, tends to push prices higher.

Related: Mystery Unveiled: Billion-Dollar Giants Behind BlackRock’s 205,000 BTC – Bank of America’s Bitcoin Entry Anticipated

However, the assumption that Bitcoin’s demand will remain constant or increase could be contentious. Critics argue that Bitcoin’s real-world utility does not justify its high valuation, despite the substantial returns seen in previous years. Currently, Bitcoin trades at around $61,000, which is approximately 17% lower than its peak price last month.

The recent market dynamics have been influenced by external factors such as geopolitical tensions, illustrated by a 10% price drop during a recent conflict involving Iran. Moreover, the introduction of Bitcoin spot exchange-traded funds (ETFs) in January has been a significant factor this year, injecting substantial new capital into the market.

Despite the potential benefits for Bitcoin holders, the halving poses challenges for miners by effectively halving their income from mining activities. This economic pressure could lead to industry consolidation, potentially resulting in more resilient and profitable mining operations.

The current price of Bitcoin (BTCUSD) is approximately USD 63,521, having experienced a recent increase of USD 2,243, representing a rise of 3.66%.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
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