The halving coincided with an increase in transaction fees as many users competed for limited space. Bitcoin users collectively spent 37.7 BTC in fees, equivalent to more than $2.4 million in current prices, to secure transactions within this block.
Bitcoin completed the fourth half. This historic moment, which occurred on April 19, 2024, saw the block reward for Bitcoin miners cut in half, from 6.25 BTC to 3.125 BTC. We are witnessing a pivotal moment in the cryptocurrency market less than 48 hours after the BTC halving,” remarked Ryan Lee, Principal Analyst at Bitget Research, in response to the occurrence.Historically, this event, designed to regulate Bitcoin’s supply, fueled intense market speculation and volatility. Historically, each half has paved the way for a bull market in the next 6-12 months.”
Increase in transaction fees and market corrections.
The halving coincided with an increase in transaction fees as many users competed for limited space. Bitcoin users collectively spent 37.7 BTC in fees, equivalent to more than $2.4 million in current prices, to secure transactions within this block. A record-high fee of 37.6 BTC (worth more than $2.4 million) was attached to the halving block. Lee went on, saying, “Recent market corrections have brought problems and caused losses for some investors.” Even with the current surge in the price of Bitcoin, there are still plenty of chances. The investment logic remains sound, with a short-term focus on BTC ETF flows, a medium-term view on the market value of stablecoins, and a long-term consideration of Federal Reserve monetary policy.
Impact on Bitcoin Miners and the Market.
The immediate impact of the halving is primarily felt by Bitcoin miners, who will see their block rewards halved. This affects their profitability and could lead to changes in the cryptocurrency mining industry.
As the rate at which new bitcoins enter circulation is reduced by 50 per cent, the asset becomes increasingly rare. This built-in deflationary mechanism creates potential long-term upward pressure on the price of Bitcoin.
Bitcoin price remains stable.
Despite the major event, the price of Bitcoin remained relatively stable at around $64,000. Bitcoin traded above $65,000 on Friday, versus the $63,000 level.
Shivam Thakral, CEO of BuyUcoin, India’s second longest-running digital asset exchange, shared his thoughts: “We believe the implications of the Halving event will go beyond the price of Bitcoin as it represents an important turning point in the ecosystem. Indian investors, like their global counterparts, are watching closely. With Bitcoin’s remarkable gains of 54% this year, along with its current market cap of $1.28 trillion, Bitcoin is solidifying its importance as an investment vehicle.
Will the trend continue?
Historically, Bitcoin has rallied after a halving. However, various market factors can affect the relationship between halving events and price appreciation, making it not always straightforward.
CoinSwitch Ventures’ Investments Lead, Parth Chaturvedi, noted a minor correction in the crypto market, suggesting a buying opportunity for investors In fact, BTC whales amassed around $1.2 billion worth of BTC on Friday. The halving event, along with the launch of the Runes token standard, also led to an increase in transaction costs.”
As the world watches the aftermath of the 2024 Bitcoin halving, only time will tell if this trend will continue and what impact it will have on the broader cryptocurrency market.
