Fourth Bitcoin halving: record prices

In the world of cryptocurrencies, April 20, 2024, marked an epochal event — the fourth Bitcoin halving.

Halving is a pre-programmed process that occurs approximately every four years, resulting in a 50% reduction in the reward for mining new blocks in the Bitcoin blockchain. In other words, the number of new Bitcoins entering circulation is cut in half, which could potentially lead to an increase in the value of the cryptocurrency, provided that high demand persists.

The situation in 2024 differs from previous halvings. For the first time in history, the price of Bitcoin surpassed its previous all-time high even before the halving occurred. On April 20, the block reward decreased from 6.25 to 3.125 BTC (around $200,000 at the exchange rate at the time of the halving). The situation in 2024 is unique because Bitcoin exceeded its previous maximum before the halving — in March, the price of BTC reached $73,000. One of the factors contributing to the price increase was the high demand from American exchange-traded funds (ETFs) in the spot Bitcoin market, which launched in January. These funds buy Bitcoins to back their shares, and they already manage around $50 billion in Bitcoins, which is more than 4% of the total number of existing coins.

The Bitcoin halving is an important event that can have a significant impact on the cryptocurrency market. The reduction in the supply of new coins, coupled with high demand, has historically led to an increase in the price of Bitcoin. However, the exact impact of the halving on the price depends on many factors, such as the overall state of the market, investor sentiment, and the regulatory environment.