Bitcoin’s fourth halving, a highly anticipated event in the cryptocurrency field every four years, has finally occurred as scheduled.
The halving cuts Bitcoin's block reward from 6.25 BTC to 3.125 BTC, marking an important milestone in the industry's development. As a result, the daily issuance of Bitcoin has also been halved accordingly, with about 450 Bitcoins currently issued per day, compared to about 900 before. This trend will continue until around 2140, when all BTC will be mined.
The reason why Bitcoin halving is important is because of its far-reaching impact on the market. The fourth halving hit Bitcoin at block height 840,000, and after each such event, market volatility increases. This is because the reduction in available supply pushes up the value of Bitcoin that has not yet been mined, thereby enhancing its appeal to investors.
The phenomenon of a large amount of Bitcoin flowing into the accumulation address before the halving shows that investors are paying close attention to this event. In the days before the halving, the price of Bitcoin experienced huge fluctuations, falling below $60,000 at one point, and then quickly rebounding to $65,000 - all within a week. As of the time of writing this article, the price of Bitcoin, the world's largest cryptocurrency, is fluctuating around the $65,000 level.
Normally, the halving slows down the growth of Bitcoin supply, which will undoubtedly have a certain impact on the interests of miners, as they will face the dilemma of halving the block reward. This adjustment may cause the hash rate of the Bitcoin network to temporarily decline, as miners using older and less energy-efficient hardware may choose to exit as their business is no longer profitable.
According to BitInfoCharts, the network's computing power is currently maintained at more than 630 Ehash/s, down about 13.3% from the peak of 727 Ehash/s in March. After adjustment last week, Bitcoin's mining difficulty also reached a record high of 86.39 trillion, further exacerbating the difficulty of mining.
