Bitcoin’s price has soared to a weekly high of more than $71,000, with just weeks left until Bitcoin’s long-awaited block reward is halved.
Bitcoin price reached $71,000 on Monday night, but has since rebounded and soared to a high of $71,419.17 on Tuesday morning. The cryptocurrency is currently trading at $70,955.86, up 5.9% on the day and 10.9% over the week, according to data from . CoinGecko.
BTC has been volatile for several weeks since hitting an all-time high of around $74,000 earlier this month, but fell along with stock prices on news that February’s inflation was higher than expected. A flash crash on the BitMEX exchange caused a sharp drop in prices. Priced as low as $62,000.
Still, the cryptocurrency has largely recovered from these losses as traders prepare for Bitcoin’s halving, scheduled for April. Based on rules pre-set into Bitcoin’s code, halvings occur approximately every four years and halve the block rewards distributed to Bitcoin miners.
Currently, Bitcoin miners receive 6.25 BTC for successfully adding a block to the blockchain. It will drop to 3.125 BTC around April 19th. Historically, halvings have been bullish for BTC, with the cryptocurrency’s price surging to new all-time highs a few months after the halving.
However, some argue that correlation does not imply causation and that the price spike after the halving event was largely due to external macro factors.For example, Coinbase investigation report A paper published earlier this month found that what was driving up Bitcoin prices after the 2020 halving was “unprecedented monetary easing policy in response to the coronavirus pandemic and historically strong fiscal stimulus.” “It’s an environment that involves.”
Further complicating matters in 2024 is the emergence of multiple US spot Bitcoin ETFs that are increasing the supply of BTC ahead of the halving.That helped push prices to all-time highs. first This is a halving, something that has never happened before.
Some analysts point to tight supply from Bitcoin ETFs as a bullish indicator ahead of the halving, while others say macro factors such as high interest rates could lead to sluggish consumption and, in turn, a decline in Bitcoin demand. I’m warning you.
Edited by Stacey Elliott.
