What is Bitcoin halving? What should you do before halving? Reduce your position or buy at the bottom?
The so-called halving refers to the halving of Bitcoin's block reward.
Every time the Bitcoin blockchain generates 210,000 blocks, that is, about every four years, the miner block reward will be halved.
This is part of the mechanism to limit the total supply of Bitcoin to 21 million, and there are currently 19.65 million Bitcoins in circulation.
Halving is expected to occur until 2140, when all Bitcoins are issued.
By reducing the rate at which new Bitcoins are generated, halving introduces a deflationary aspect to Bitcoin's economic model.
The halving event is a key feature of Bitcoin's design to ensure its scarcity, value retention, and long-term sustainability as a digital currency. Since its creation in 2009, Bitcoin has experienced three halvings, which occurred on November 28, 2012, July 9, 2016, and May 11, 2020.
After the third halving, miners' block rewards have been reduced to 6.25 bitcoins.
After the halving, some miners may be forced to shut down operations, and the computing power of the Bitcoin network may temporarily decrease.
However, a reduction in supply usually leads to a rise in prices.
Historically, the price of Bitcoin tends to rise after halvings. Today's#BTCdecline is normal buying and selling data, and there is no market crash.
Assuming that the market is really going to crash, the big players will arbitrage at high levels and leave, and the price will continue to go back and forth to reassure retail investors.
