Bitcoin is expected to halve in May 2024. What impact will the Bitcoin halving narrative have on its price, and how should we prepare for it later?
#热门话题
#内容挖矿
![](https://public.bnbstatic.com/image/pgc/202402/82ace0dc493ce5d1aac9307fa62ca760.png)
What is halving?
The Bitcoin halving event is a mechanism built into the Bitcoin network that occurs approximately every four years to halve the reward for newly generated Bitcoins. This mechanism is designed to prevent inflation and ensure that the total amount of Bitcoin does not exceed the preset upper limit of 21 million. Historically, Bitcoin halving events usually have a significant impact on its price, and many people see this as a major driving factor for the rise in Bitcoin prices.
The relationship between halving and price
The impact of halving on Bitcoin price is mainly based on the principle of supply and demand. The halving event reduces the rate at which new Bitcoins are produced, thereby reducing the new supply. If demand remains the same or increases, a reduction in supply could theoretically cause prices to rise. The price of Bitcoin has fluctuated significantly before and after the actual Bitcoin halving event in the past. Many investors will buy Bitcoin in advance in anticipation that the halving will cause the price to rise.
![](https://public.bnbstatic.com/image/pgc/202402/90cc3b0093d891f7678337977ecb032a.png)
Typically, the market may have anticipated the price impact of the halving to some extent, so the impact may not be as significant when it actually occurs. The current price of BTC once reached 5.7 million U.S. dollars, which is only a ten percent increase from the previous high. Combined with the benefits of this year’s BTC ETF, the coming of the halving cycle, and the possibility of interest rate cuts by the Federal Reserve in the future, BTC will still break through the previous high. Very promising. However, at the same time, the price of Bitcoin is affected by a variety of factors, including macroeconomic conditions, regulatory changes, technological developments, etc., which may have an important impact on the price of Bitcoin. The connection between BTC and the financial market has become more relevant with the entry of a large amount of capital. In addition, the current price is already at a relatively high level. At this moment, it is not recommended to build a large position. Instead, it is better to use the phased retracement and cooperate with fixed investment to gradually increase the position. Reduce costs while also managing risks.
The above is purely personal sharing and does not constitute any investment advice. Don't believe any so-called teacher who can help you make money. Stay away from local dogs who lead orders. Why would they guide you if they can make money? The risk in the currency circle is extremely high. You are responsible for your own property.
How to quickly accumulate wealth in the cryptocurrency world with different capitals, please pay attention to my previous videos, and you will find the answers you want!
Your support and encouragement give us the motivation to keep updating. Please look for Mr. Jason C's channel, which has the same name on the entire network and is dedicated to discovering high-quality projects in the cryptocurrency circle.#热门话题