“The Behind the Scenes of BTC Halving: How Reward Change Will Impact the Cryptocurrency Market?”

Upcoming Bitcoin Miners’ Reward Halving

The upcoming reduction in Bitcoin miners’ rewards, known as halving, is one of the most anticipated events in the history of cryptocurrencies. The previous three Bitcoin halvings took place in 2012, 2016, and 2020. Now, in April, another decrease in the block reward is expected.

SEC on a New Path with Bitcoin ETFs

The current reduction in Bitcoin miners’ rewards follows the approval of the first-ever U.S. exchange-traded funds (ETFs) on Bitcoin by the Securities and Exchange Commission (SEC). The emergence of ETFs raises investors’ expectations, especially in the context of rising global inflation, making cryptocurrencies increasingly attractive to many individuals.

Possible Effects of the Bitcoin Block Reward Reduction

The reduction of the block reward from 6.25 BTC to 3.125 BTC for Bitcoin may increase pressure on the supply of this cryptocurrency. A decrease in the number of new coins in the market could lead to a deficit, which in turn could drive up the prices of Ethereum and other cryptocurrencies.

Divergent Expert Opinions

Some experts predict that the increase in Ethereum prices may be unfavorable due to the rising costs of the Ethereum network. This scenario could reduce the attractiveness of this cryptocurrency for users and developers. However, the positive price trends of Bitcoin and Ethereum may result not only from the halving but also from other factors such as technological innovations, ETF approvals, or supply reductions.

Forecasts for the Future of the Cryptocurrency Market

It is expected that the upward trends in the cryptocurrency markets will continue in 2024. Investors and market observers are eagerly awaiting to see how the Bitcoin miners’ reward reduction and other factors will impact the further development and prices of the world’s largest cryptocurrencies.