Was the Bitcoin halving the main reason for last night’s market dive, or was it just the final adjustment before the halving?

Many newcomers are still confused about the concept of Bitcoin halving, and mistakenly believe that the total amount of Bitcoin will be halved. In fact, Bitcoin halving refers to the reduction of mining rewards, that is, every four years, the number of new Bitcoins obtained from mining is halved. For example, the current reward for each new block is 12.5 Bitcoins, which will become 6.25 after halving.

This halving mechanism has a profound impact on the cryptocurrency industry. First, a reduction in supply tends to push up prices when demand is stable or growing, so halving is often seen as a catalyst for price increases. Second, halving events often trigger market sentiment fluctuations, and investor sentiment may experience ups and downs before and after halving. Investors should remain calm and avoid being swayed by market sentiment.

In addition, the rise in Bitcoin prices may attract more developers and companies to join the ecosystem, promote its application and development, and further increase the price. However, it should be noted that halving is not the only factor in price increases. Market demand, policies and regulations, and technological innovation are equally important.

Finally, the halving directly affects the mining industry. Reduced revenue may cause some miners to withdraw or optimize their equipment, changing the ecology and structure of the mining market.

The adjustment has not yet been completed, so be cautious when buying at the bottom. Follow me and plan for a big bull market