๐Ÿ™‹ "About Halvings"

๐Ÿ—ฃ๏ธEvery four years, the Bitcoin halving occurs, meaning that the amount of new coins issued through mining rewards is cut in half. When Bitcoin first launched, mining rewards were 50 BTC. Currently, that figure is 6.25 BTC, and after the next halving, it will be reduced to 3.125 BTC.

๐Ÿ—ฃ๏ธThe halving occurs every 210,000 blocks rather than on pre-specified dates, but this corresponds to a roughly four-year cycle, which means that the next reduction in issuance should reach us this April. Notably, a glance at BTCโ€™s price action since inception reveals a repeating pattern of vertical gains, deep corrections, and drawn-out recoveries, and this sequence appears to correspond closely with the halvings, leading among bitcoin traders to an entrenched belief in halving-driven movements.

๐Ÿ—ฃ๏ธHowever, as Bitcoin has matured and grown in market capitalization, and with the introduction now of spot Bitcoin ETFs in the United States, some are questioning whether the halving event is still relevant, while you can also find a few voices asserting that the halving was in fact never as important as assumed, arguing instead that other, less obvious factors have fueled price movements up to now.

๐Ÿ—ฃ๏ธOn top of this, the Bitcoin market cap is far larger now than in the early days of the assetโ€™s existence, currently sitting just above $1 trillion, which is approaching the November 2021 all-time high of over $1.2 trillion. This still puts BTC a long way off gold (for which it is touted as a digital replacement), which has a market cap of around $13.6 trillion, but nonetheless, BTC is a weightier asset than it once was, which corresponds to reduced volatility.

๐Ÿ—ฃ๏ธUltimately, after fifteen years, Bitcoin has moved towards the mainstream: spot ETFs reposition BTC within the investing landscape; if institutional adoption catche on, it will reinforce that shift and banking institutions are currently pushing the SEC to allow them to custody crypto.

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