Around 7 p.m. UTC last night, the halving of Bitcoin came and went. The long-awaited and regularly scheduled event, which returns every four years or so, is expected to cause miners to stop selling their BTCs, which would suddenly be a loss.
However, initial data shows that miners still pour exactly the same amount of BTC into the market. What does this mean for the first cryptocurrency, and this initial data suggests that halving it will not have the effect that investors in the cryptocurrency have long hoped for?
Understand the expected impact of halving Bitcoin
Bitcoin was designed following the 2008 financial crisis by the mysterious Satoshi Nakamoto
There will only be 21 million BTCs, which will give the asset a shortage similar to gold. In addition to adding a deflationary quality to the asset protocol, a recurring event called halving reduces the block reward that miners receive for protecting the network.
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Before last night's countdown reached zero, miners received 12.5 BTC per validated block. Now that number is only 6.25 BTC.
But although the reward has been reduced by 50%, the cost of validating each BTC block in energy remains the same.
This is said to capitulate ineffective miners, freeing up the market for miners who add selling pressure, thus allowing more efficient miners to dominate and raise prices.
Previous halves have pushed the price of Bitcoin to new heights, and this time the same is expected.
Miners keep throwing almost the same $ USD number of $ BTC on the market today
I will be watching this closely for the next two weeks. pic.twitter.com/3W2v3rs5PM
– MeanHash⛏️🤖⛏️ (@MeanHash) May 12, 2020
Minors continue to download BTC at the same rate of half
However, initial data suggests that miners are not keeping their BTC, which is now more expensive, and are throwing the same equivalent in USD on the market as yesterday.
Less than 24 hours have passed since halving, so the data is too recent to really make sense of the formation of a trend, but for now, the event is not has not had the long-awaited initial impact.
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In the past, more than 100 days of parallel trading has been done after each halving of Bitcoin, before the price before the halving is reached again. After that, however, he went to the races, and Bitcoin started to climb to almost $ 20,000.
According to the hash band indicator, the capitulation occurred in late December 2018, again in December 2019, and then on Black Thursday. Could a new wave of capitulation lower the price of Bitcoin, or are miners just taking their time before waiting to wait for their newly created BTC?