Bitcoin halving took place on the network, BTC / USD crawled down

Bitcoin halving took place on the network, BTC / USD crawled down
CONTENT

  • The key block is mined by the AntPool mining pool

  • The short-term market reaction followed the scenario "we are not interested in this"

  • Long-term investors are set for steady growth

Bitcoin halving took place on the network, BTC / USD crawled down

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Short-term speculators have not yet come to their senses, long-term investors are still betting on the bullish halving effect.

At 22:23 Moscow time on the bitcoin network, the third halving occurred on block 210,000. Bitcoin halving halving the number of new coins created and earned by miners. It happens about every four years and … More. Now miners will receive 6.25 BTC for each mined block instead of 12.5 BTC.

The last block was mined by the AntPool mining pool.

Bitcoin halving took place on the network, BTC / USD crawled down

The event that was expected

Halving is one of the basic principles embedded in the program code of a cryptocurrency and determining its economic model of a cryptocurrency. Regularly dividing the block reward ensures that coins are released gradually at a predictable and constantly slowing rate. This mechanism to contain inflation is the main difference between cryptocurrencies and traditional fiat money..

The approach is accompanied by a lot of hype in the cryptocurrency circles. This time was no exception: the number of searches on Google on the topic of halving has grown sharply, not to mention all kinds of predictions, scenarios and scenarios. Coronavirus pandemic, economic crisis and money printing by central banks added relevance to the event and increased nervous excitement in the market.

Market reaction was blurry

Bitcoin halving took place on the network, BTC / USD crawled down

Some market participants argued that the event was fully embedded in prices, therefore, it would not have a significant impact on the market situation, it was this first reaction that Bitcoin issued immediately after the halving..

Bitcoin resumed its decline shortly before the halving and settled in the $ 8,500 area after failing to gain a foothold above $ 9,000 in the European session. At the time of this writing, BTC / USD is trading at $ 8,400, however, sellers’ pressure is already increasing in the market amid growing volatility, thus, one should take into account the possibility of a delayed speculative market reaction.

Despite the short-term reaction, most cryptanalysts and investors are betting on the growth of bitcoin in the long term due to the factors listed above, which provide bitcoin with an advantage as a hedging tool against inflation and devaluation of fiat currencies..

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