Bitcoin is up 80% since the start of the year
Bitcoin is almost a year away from a key technical shift that could catalyze a long rally in the cryptocurrency’s price.
In April 2024, Bitcoin will undergo a so-called halving period, although the exact number has not yet been determined.
Bitcoin has been anticipating a halving over the past few weeks as a potential rate hike by the US Federal Reserve counters the outlook for slower growth, fueled by volatility in the banking sector.
One Bitcoin is worth about $30,000. The world’s largest cryptocurrency is up more than 80% year-to-date.
The VP of Corporate Development and International Crypto Exchange said Bitcoin is pushing above $30,000 amid banking instability and economic uncertainty.
Future rises due to Bitcoin halving
Bitcoin halving occurs approximately every four years. The event reduces the reward by 50% to Bitcoin miners who manage specific equipment to transact on the network and explore new tokens.
Currently, Bitcoin miners receive 6.26 Bitcoins for each block. This indicates that their computer has the computing power to solve the cryptographic tasks securing the Bitcoin network.
When the next bitcoin halving begins, this reward will return to 3,125 bitcoins.
Experts say this will help the price increase by promoting the scarcity of Bitcoin.
The price of Bitcoin rose by 19% in the previous 12 months, from $7,191.37 to $8,568.78.
During the 2016 halving, Bitcoin advanced 142% over the past 12 months, from $269.15 to $651.84.
The price of Bitcoin is increasing even more in the months after the halving.
After the May 11, 2020 halving, the cryptocurrency advanced 688.31% in the next 546 days.
Before the halving on July 9, 2016, Bitcoin skyrocketed by 2,825%.
Bitcoin had a difficult 2022, defined by the instability of large companies and projects.
Rising inflation has led to higher interest rates in the United States.
This has caused the prices of several top digital currencies to pull back sharply from their all-time highs.
Despite its recent advance to $30,000, Bitcoin is still back more than 50% from its November 2021 high.
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