Bitcoin Experiences Fourth Halving, Price Relatively Stable

The oldest and largest blockchain reached its 840,000th block shortly after midnight UTC on April 20, activating the latest halving of bitcoin. Despite the excitement surrounding the event, the price of bitcoin remained relatively stable.

The price of bitcoin was $63,976 when the key block was mined, according to CoinGecko data, marking a 1% increase in the previous 24 hours. Half an hour later, it remained unchanged at $63,873.

The final price effect of the long-planned and closely monitored event follows a series of volatility over the past few days, including a sharp drop in the price of bitcoin to $59,573 the day before the halving, followed by a decent recovery above $65,000 hours later.

Before the halving, JP Morgan expressed the opinion that they do not expect an increase in the price of bitcoin after the halving as the event has already been priced in.

The milestone, which halves the rewards given to bitcoin miners for generating each new block, directly affects mining companies, mining pools, and independent miners. However, crypto observers are also focused on the potential impact the event will have on the price of bitcoin.

Bitcoin set a new all-time high last month, surpassing $73,000, which some say demonstrated unusual strength, albeit unusually early. However, the largest cryptocurrency soon lost its upward momentum and trend attributed to factors ranging from discouraging U.S. economic indicators to geopolitical unrest in the Middle East.

Analysts have debated whether the latest bull run is already over, and environmentalists have questioned whether the reduced reward will lead to less mining, and thus better environmental conditions.

Is the halving already priced in? Would the value of bitcoin fall after this moment, as it usually does, but eventually soar to new heights? Perhaps, market commentators say.

Less than an hour after the halving, the short-term and long-term impact of the event on the price remains to be seen. For now, as mainstream financial markets face a price correction, the crypto community is largely filled with hope.

The impact on bitcoin miners is likely to be more tangible. After all, the initial reward for generating a block was 50 bitcoins. By this latest halving, the bonus was 6.25 bitcoins. For the next four years, or 210,000 blocks, the reward is 3.125 bitcoins.