The Bitcoin halving in 2024 is definitely a milestone in the cryptocurrency field. Bitcoin halving is just a few days away. Before the halving, the price of BTC experienced great fluctuations. It has now fallen by 12,000 points from its highest point. At the same time, the altcoins have also been cut in half, and the fear/greed index has also dropped from 74 to 60. The market seems to have cooled down.
Bitcoin halving refers to the halving of block rewards in the Bitcoin network. That is, the number of new Bitcoins obtained by Bitcoin miners is halved, which means that the difficulty of mining increases. The total supply of Bitcoin is set at 21 million, and the halving is to control inflation and make Bitcoin more scarce.
Below is a table of data related to the four Bitcoin halvings. It can be seen from the table that the price of BTC has doubled many times in a period of time after each halving. At the same time, the amount of BTC produced after each halving has increased. After this halving, the remaining total amount of BTC is not much, perhaps less than 10% of the total. In other words, from the perspective of the economic model, the impact of halving on the supply and demand relationship is much smaller than before, and the price and market value of Bitcoin are no longer of the same order of magnitude during the previous halving and this halving. In this case, does the impact of Bitcoin production halving on the price still have such a big impact? In other words, the impact on the price is no longer the reduction in production itself, but the popularity brought by the reduction in production and everyone’s consensus on BTC. After all, BTC EFT has been issued.
Many people have been saying that after the halving, we may not see Bitcoin starting with 6, but the market experienced a sharp drop on April 12, and many people's assets were halved in advance. I will look for some altcoins suitable for building positions. If I don't start building positions during this pullback, there will probably be no better opportunity to buy spot coins, so I must seize the opportunity to find a good point to buy this time.
As I said, in a bull market, stay away from high leverage, buy more spot, and reduce leverage trading. High-leverage contracts cannot outperform spot.
