What's Next After Bitcoin Halving?

The Bitcoin halving event, which has been four years in the making, has not significantly impacted the price of $BTC. According to CoinGecko data, BTC was priced at $63,976 when the pivotal block was minted, representing a 1% gain over the previous 24 hours. Half an hour later, it remained unchanged at $63,873.

Despite the closely-watched event, the long-planned and anticipated milestone had a limited effect, following a tumultuous few days in which the Bitcoin price dropped steeply to $59,573 on a major exchange, and then recovered above $65,000 hours later, amid a generally discouraging past month.

JP Morgan had previously indicated, "We do not expect Bitcoin price increases post-halving as it has already been priced in." The firm's prediction was at least partially correct. The halving, which reduces the reward given to Bitcoin miners for generating each new block by half, is aimed at moderating block creation and directly affects mining firms, mining pools, and independent miners.

Crypto watchers are also interested in the outcome, focusing on the potential impact the event will have on the price of BTC. Bitcoin had recently set a new all-time high, breaking past $73,000, part of a widely celebrated Bitcoin bull run that some experts said demonstrated uncommon strength, albeit unseasonably early. However, the coin soon fluttered downwards, a trend attributed to factors ranging from discouraging U.S. economic metrics to unrest in the Middle East.

On the eve of the halving, many questions remained unanswered. Analysts debated whether the latest bull run was already over, and environmentalists questioned if the reduced reward would lead to less mining and better environmental conditions. Would the halving already be priced in? Would the value of Bitcoin drop after this moment, as it typically has, but ultimately soar to new heights? Experts suggested that anything is possible.

Less than an hour after the Bitcoin halving, the impact of the event on short-term and long-term prices has not yet been determined. Meanwhile, as mainstream financial markets enjoy their weekend break, the crypto community is largely optimistic.

The impact on Bitcoin miners is likely to be more tangible. After all, the initial reward for generating a block was 50 Bitcoins, which was reduced to 6.25 BTC until this most recent halving. For the next four years or 210,000 blocks, the reward is now 3.125 BTC. The future remains unpredictable, and anything can happen leading up to 2028.

Bitwise Chief Investment Officer Matt Hougan has offered a long-term perspective on the Bitcoin halving, citing historical data and spot ETF demand. Hougan views this year's Bitcoin halving as a "buy the news" opportunity for investors interested in the world's largest cryptocurrency asset class. The halving is a pre-installed code change designed by anonymous Bitcoin creator Satoshi Nakamoto to manage BTC inflation and maintain supply scarcity. Nakamoto built the system to decrease mining rewards by 50% every 210,000 blocks or four years.

As block mining rewards are halved, the amount of new BTC entering circulation is likewise reduced. Many believe that this reduced supply, combined with increasing demand through spot Bitcoin ETFs, will result in higher prices by next year. Hougan, whose company is a BTC ETF issuer, supports this sentiment.

Coinpass CEO Jeff Hancock has stated that Bitcoin has matured from a hobby and speculative market into a real asset with institutional interest. This cycle is bound to be different, especially in a high inflation, high-interest rate economy, according to Hancock.