The news has been full of it in recent days, but now it is finally reality. The fourth Bitcoin halving was successfully completed last night, from Friday to Saturday.

This BTC halving, which takes place once every four years, is intended to combat inflation and make the currency scarcer and therefore more valuable.

The impact of the Bitcoin Halving

Every Bitcoin halving is a crucial moment for crypto enthusiasts. This event, which happens every 210,000 blocks, just pushed the network to a new milestone of 840,000 successfully processed blocks.

The recent halving has reduced the daily production of new Bitcoins from 900 to 450. This is a significant change designed to limit inflation by reducing the supply of new coins, potentially making the coin more valuable.

Miners, especially in the United States, have prepared for this significant drop in revenue by investing in more advanced equipment. This strategy is essential to be able to mine more efficiently and thus compensate for the lower yield.

The next halving is expected at a block size of 1,050,000, likely sometime in the first quarter of 2028. This process of halving will continue until approximately the year 2140, when the last Bitcoin is expected to be mined.

Will there be a big price increase?

Historically, a Bitcoin halving often leads to positive price performance in the year it occurs. The halving reduces the speed at which new coins are created and hit the market, which limits supply. If demand remains the same or increases, this could lead to higher prices. Furthermore, all previous halvings have historically produced significant price increases.

Yet the future is uncertain. Several factors can influence historical trends. David Lawant, chief researcher at crypto broker FalconX, notes that the influence of miners on price formation has decreased in recent years.

He points out that macroeconomic factors play a prominent role in Bitcoin’s price development today. This shift suggests that while the halving remains an important factor, external economic conditions could have an increasing impact on the currency’s value.

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