© Reuters An in-depth look at the Bitcoin halving: Factors driving Bitcoin to new highs.
InfoQuest – Bitcoin's total market cap exceeds $1 trillion today. For the first time since December 2021, this is due to expectations of the Bitcoin halving phenomenon this year, in addition to the US approval of the creation of the Spot Bitcoin ETF.
A Bitcoin halving is a Bitcoin block halving event that occurs every four years, halving the rate of new Bitcoin creation. While reducing the rewards given to Bitcoin miners. To maintain a balance between supply and demand for Bitcoin in the market.
Bitcoin halvings have happened several times before. Each time this happened, it was a factor that supported Bitcoin to rise to new highs.
The first Bitcoin halving occurred in November 2012 and just one year later. Bitcoin rebounded to $1,152 in December 2013.
The second Bitcoin halving occurred in July 2016 and just one year after that. Bitcoin rebounded to $17,760 in December 2017.
The third Bitcoin halving occurred in May 2020. As a result, Bitcoin rose to over $69,000 in November 2021. The highest level on record.
Meanwhile, the fourth round of Bitcoin halving will take place in April 2024. This is expected to be a supporting factor for Bitcoin to reach new highs over the next year and 5 months.
Bitcoin also received a boost after the US Securities and Exchange Commission (SEC) approved the creation of the Spot Bitcoin ETF on January 10, resulting in a significant influx of funds into Bitcoin. By last week about $1.1 billion had flowed into the Spot Bitcoin ETF since the fund's launch. It turns out that the money flowed to the tune of $2.8 billion.
Moreover, analysts expect Bitcoin to continue its upward trend. There is a positive factor from the fact that the Federal Reserve Bank (Federal Reserve) may cut interest rates in June. This would increase liquidity in financial markets.
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