Bitcoin Halving has concluded, officially slashing rewards for miners to 3.125, effective last Friday. The event happens once every four years, or after 210,000 blocks have been validated. Crypto enthusiasts across the world were looking forward to Bitcoin halving, one core reason being its historical context of causing a surge in the trading value. Analysts had previously cautioned that it may not pull the price as high as it has done in the last three iterations. If anything, it would soften the decline in value.
That fundamental assumption cannot be confused with the fact that there will never be an increase in BTC’s value. The token is still poised to touch the milestone of $100,000 by the end of this year. Alternatively, it could bounce as high as $150,000 before entering 2025.
There are mixed reactions within the ecosystem, irrespective of the background. Meaning, institutional and retail investors have spilled the beans by sharing what they think about Bitcoin Halving. The expectation of a bull run in the future is a common thread. Also, the annual inflation of Bitcoin is estimated to be less than that of gold, setting a new store of value for the upcoming generation.
The entire idea behind Bitcoin Halving is to reduce the rate at which the tokens are created. As a result, there is scarcity and an increase in price.
Manhar Garegrat, the Country Head at Liminal Custody Solutions for India, has addressed this aspect of Halving. Manhar has said that it could influence the price as the scarcity rises, adding that it will lead to upward price pressure and an influx of new investors. That said, Bitcoin prices have been speculated to fluctuate because of the introduction of ETFs and expectations around rate cuts by the Federal Bank.
Rahul Pagidipati, the Chief Executive Officer of ZebPay, has expressed an optimistic opinion about Bitcoin Halving. He has said that they are bullish about the long-term and short-term outlook for Bitcoin as it ensures that the asset remains deflationary through the process.
Bitcoin Halving has had little impact on BTC’s listed price so far. For reference, it was just above $63,000 when Bitcoin Halving concluded. BTC is now exchanging hands at $66,256.67, with a surge of 1.64% in the last 24 hours. Bitcoin has reached closer to $73,000 to set a new ATH. There is no denying that it does so once again, especially with a high level of optimism about its future value.
The halving’s effects, according to JPMorgan and Deutsche Bank experts, are already factored into bitcoin’s current price, thus the market is unlikely to see a significant price increase in the wake of the announcement. JP Morgan analysts have clarified that they do not expect Bitcoin’s price to rise after Halving, attributing this to the overbought status of the token.
It will be interesting to see how long the crypto market takes to react to the recent changes brought about by the halving.
Source: https://www.cryptonewsz.com/bitcoin-halving-attracts-mixed-reactions-from-enthusiasts/