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Investing.com — Supply growth is expected to dip below 1% for the first time as the “halving event” begins next month, highlighting the scarcity premium of popular cryptocurrencies and adding to current bullish momentum as institutional investors join in There is a high possibility that the market will accelerate. Compete to “hold” popular cryptocurrencies.
“Bitcoin supply growth, currently at about 1.7%, will drop to just under 1% for the first time in Bitcoin history,” and the next halving event is expected to occur “sometime on April 17th.” Director of Education, Governance and Initiatives said. Web3 Foundation told Investing.com's Yassin Ebrahim in an interview Thursday.
The halving event, which occurs every four years, reduces the amount of Bitcoin produced by miners on the Bitcoin blockchain, or network, by half. In other words, it is “halved”.
But what exactly goes into half?
The only way to create Bitcoin is to generate blocks for the Bitcoin network. Currently, each block generates his 6.25 Bitcoins and is distributed to miners who are responsible for validating the transactions stored in the block on the blockchain. However, in the next halving event, this reward will be halved to 3.125 BTC, slowing down the rate at which new Bitcoins are minted and increasing their scarcity and price.
Of the total 21 million Bitcoins, approximately 19.6 million Bitcoins, or approximately 93.59%, have already been mined. “Going forward, miners will be competing to significantly reduce the amount of Bitcoin issued in each block,” Labun said, until the final block is mined, expected sometime in 2140. He added that it would still take some time.
Since its creation in 2009, Bitcoin has had three halvings where its supply growth has dropped from 25% to just under 2% today.
Historical halving appears to be making Bitcoin bulls smile
In the previous four-year halving cycle, Bitcoin's price followed a distinct path over three major periods: pre-halving, halving, and post-halving.
In the previous cycle in May 2020, Bitcoin was trading around $9,000 before the halving, but after the halving on May 11, 2020, it started a bull market and by November 2021 It rose to an all-time high of $68,982.20 and then underwent a significant correction.
Bitcoin's 18-month period from halving to peak price is consistent across historical data for previous halving cycles. The current BTC price peak is expected to reach the third week of October 2025, when institutional investors are entering the fray following the launch of the Spot Bitcoin ETF in January this year, and many I'm optimistic. The current bull market still has plenty of runway left.
According to data from Coinglass, the U.S.-based Spot Bitcoin ETF is similar to BlackRock's iShares Bitcoin Trust (NASDAQ:) and Fidelity's Fidelity Wise Origin Bitcoin Fund (NYSE:). In total, the results showed that as of March 16, the assets under management exceeded $60 billion. ) take the lead.
Bitcoin is evolving. . .
After the last block has been mined and 21 million Bitcoins have been circulated, many people are no longer interested in the Bitcoin blockchain, as miners may have less incentive to continue maintaining the network without the reward of producing new blocks. I'm worried about the future.
However, use cases for Bitcoin beyond simply transferring Bitcoin from one user to another are starting to emerge, with increased activity on the network and associated transaction fees more likely than not for miners to mass-produce. There is a possibility that you can make much more money than the compensation you receive by doing so. new block.
“We have actually seen in the last year or so that there are other uses for the Bitcoin network beyond just transferring Bitcoin, the most famous being ordinal, which is known as “Super NTF ( It can be thought of as a non-fungible token). ” said Laboon.
“Over time, this fee market will replace new Bitcoin issuance, ensuring that miners are compensated for their work in continuing to secure the network,” he added.
Laboon added that the increasing creation of layer 2 technologies and off-chain networks built on top of layer 1 blockchains like Bitcoin are “huge growth areas” for Bitcoin. Bitcoin's security may also be used to run more complex programs that have been run on other blockchains. ”
