Regulations, spot Ethereum ETF and pension funds allocating space to Bitcoin in their portfolios are among the agendas of the crypto ecosystem after the halving.
While Bitcoin is looking for stability after the “halving”, which is closely followed by the crypto world, it is stated that the next agenda of the crypto ecosystem will be regulations, spot Ethereum ETF and pension funds allocating space for Bitcoin in their portfolios.
While the reward halving occurs every 210 thousand blocks in the largest cryptocurrency Bitcoin network, the halving occurs approximately once every 4 years, as each block in the network is verified in an average of 10 minutes.
Following the process that first took place in November 2012, the 50 Bitcoin reward given to miners per block was reduced to 25. After the halvings in July 2016 and May 2020, the reward per block was updated to 6.25.
Finally, after the reward halving that took place last week, the reward miners earned per block was 3,125 Bitcoin.
It was thought that the reward halving, which occurs every 4 years in Bitcoin mining, could have an upward effect on prices due to a decrease in supply.
Price movement remained limited after the last halving
While the price of Bitcoin decreased one month and three months after the halving in 2016, the cryptocurrency gained nearly 50% in value six months after the halving and nearly 100% nine months later.
In the previous halving period, 2020, the price of Bitcoin increased by 13% after one month, 36% after three months, 89% after six months and 458% after nine months.
Since the price generally increased in previous periods, this reward halving was also expected to have an impact on pricing in the cryptocurrency market.
While the movement in the price of the cryptocurrency remained limited after the reward halving, the halving was considered important by the crypto community in terms of restricting the supply of Bitcoin.
Bitcoin fell due to geopolitical tensions
According to data from analysis company Coinmarketcap, Bitcoin, which recorded its all-time high of $73,750 last month, had difficulty finding direction with market uncertainties and geopolitical tensions.
While the increasing geopolitical tensions in the Middle East before the halving affected Bitcoin closely, it was noteworthy that Bitcoin responded downwards to the increase in tensions before all assets. After the increasing tension between Iran and Israel, the price of Bitcoin fell below $60 thousand.
The price of Bitcoin moved between $63 thousand and $66 thousand after the first halving since 2020.
Analysts stated that various developments such as global economic factors, political instability, regulatory developments and market sensitivity also affect cryptocurrency prices, and emphasized that each period has different conditions.
Noting that each halving period has its own conditions, analysts warned that current economic and geopolitical conditions should be taken into consideration when using past trends as a guide.
Analysts stated that the crypto world will now focus on stability and innovation, and that the next agenda of the crypto ecosystem includes regulations, spot Ethereum ETF, retirement funds allocating space to Bitcoin in their portfolios, and spot Bitcoin ETF developments in countries such as Hong Kong and Singapore.
Source: AA / Prepared by Irem Yildiz