© Reuters.
NEW YORK – Market analysts are predicting a significant rally around its next halving event scheduled for April 23, 2024. Historical data has indicated that the cryptocurrency tends to see substantial gains following such events, with returns average annual growth of more than 400% recorded after previous halvings. . This optimism is shared by many in the investment community as they closely monitor the upcoming reduction of Bitcoin block rewards.
The halving event, a mechanism built into Bitcoin’s code to reduce the rate at which new coins are created, is expected to reduce block rewards from the current 6.25 BTC to approximately 3.125 BTC at some point. block of 840,000. This planned shortage has traditionally led to an increase in the value of Bitcoin, and current market sentiment suggests a similar outcome after the April 2024 halving. Currently, the value of Bitcoin is around $43,800, and the forecast a new reduced supply is fueling expectations of a price increase.
Additionally, the investment community is keeping an eye on the upcoming decision by the US Securities and Exchange Commission (SEC) on a Bitcoin spot exchange-traded fund (ETF). If the SEC approves such an offering, companies like BlackRock (NYSE 🙂 are prepared to introduce their products to the market. While the possible launch of a Bitcoin spot ETF is considered positive news, its impact on the price of Bitcoin is considered secondary to the effects of the halving.
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