According data provided by Nicehash, the Bitcoin halving event is just 30 days away. The much-awaited event is expected to occur on April 12, marking yet another era for the leading blockchain.
According data provided by Nicehash, the Bitcoin halving event is just 30 days away. The much-awaited event is expected to occur on April 12, marking yet another era for the leading blockchain.
The Bitcoin halving is carried out once every four years to decrease the supply of newly mined coins. With the upcoming halving, the Bitcoin block reward will drop to just 3,125 BTC.
During previous halving cycles, the price of Bitcoin would rise substantially a few months after the event. If history is any guide, bulls could expect the upcoming block reward reduction to be another major bullish catalyst.
Main bullish catalyst
Featured investors like Galaxy Digital boss Mike Novogratz see the halving event as the main bullish catalyst that will drive the price of Bitcoin up.
In fact, one trader appears to be convinced that the price of Bitcoin could reach a staggering $200,000 even before the halving occurs. “Always remember that prices are set at the margin. Supply matters,” he wrote.
Adam Back, CEO of Blockstream, is convinced that the price of Bitcoin could approach the $100,000 level now that the halving is around the corner.
Bearish views
However, there are some skeptics like Peter Schiff, a long-time Bitcoin detractor, who have downplayed the impact of the halving. As Guru-Investingreported, Schiff recently noted that the current supply of Bitcoin would not be reduced by new coins. Therefore, if there is strong selling pressure from current holders, the ball could still end up in the court of the bears.
Due to the rapid reduction of the block reward, miners will find themselves in a serious situation. Those not sufficiently prepared for the impact of the halving could struggle to remain operational. In such a case, there could be a sudden drop in Bitcoin hashrate if there is a rapid exodus of miners. However, the difficulty adjustments are expected to mitigate their dire financial conditions by making mining more accessible.
