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The oldest and largest blockchain entered its 840,000th block shortly after midnight UTC on Saturday morning, marking the start of the latest Bitcoin halving, beginning on April 20 (12:10 AM ET). Despite all the hype and expectations, BTC price has remained stable.
The price of BTC was at $63,976 when the pivotal block was issued, a gain of 1% in the last 24 hours, according to CoinGecko data. Thirty minutes later it was essentially flat at $63,873.
The ultimate effect of this long-planned and closely monitored event was a roller coaster ride of several days. The price of Bitcoin fell sharply to $59,573 on one major exchange late yesterday, followed by a significant recovery after 65,000 hours. The last month has been very discouraging.
Just yesterday, JP Morgan said, “We do not expect the price of Bitcoin to rise after the halving as it is already priced in.” The company was at least half right.
This milestone, which halves the reward provided to Bitcoin miners for each new block they create, aims to ease block production and has a direct impact on mining companies, mining pools, and promiscuous independent miners. But cryptocurrency watchers are also invested in the outcome, focusing on the event’s potential impact on the BTC price.
Bitcoin broke an all-time high last month, surpassing $73,000. This was part of a Bitcoin bull market that some said was unusually strong early on, albeit unseasonably. But the coin soon began a downward trend, a trend blamed on a variety of factors ranging from discouraging U.S. economic data to surging unrest in the Middle East.
Even on the eve of the halving, many questions were floating around.
Analysts debated whether the recent bull market was already over, while environmentalists asked whether reduced compensation would lead to less mining and better environmental conditions.
Is the halving already priced in? Will Bitcoin’s value fall after this moment, as it typically does, but ultimately soar to new heights? Probably, experts said.
With the Bitcoin halving occurring in less than an hour, the short- and long-term price impact of this event has yet to be confirmed. With mainstream financial markets currently enjoying a weekend break, the cryptocurrency community is extremely happy and hopeful.
The impact on Bitcoin miners will be more visible. After all, the initial reward for creating a block was 50 Bitcoin. Until the most recent halving, the bonus was 6.25 BTC. Over the next 4 years, or 210,000 blocks, the reward will be 3.125 BTC. A lot can change in one day, and anything can change in 2028.