Bitcoin Price Surpasses $52,000, Indicating Pre-Halving Rally
Bitcoin’s price has exceeded the $52,000 mark in the last 24 hours, signaling the start of a pre-halving rally in the market. Bitfinex Head of Derivatives Jag Kooner stated that this movement aligns with previous bitcoin cycles and these rallies typically begin around eight weeks before the halving event. Kooner believes that this rally could push prices even higher than previous cycle highs, as bitcoin has recently emerged as a trillion-dollar asset due to spot bitcoin ETF inflows.
GBTC-Based Sell Pressure Decreasing
Kooner also noted that the selling pressure associated with Grayscale’s GBTC fund has diminished, along with consistent daily inflows into other ETFs. This has significantly contributed to supporting bitcoin’s price. However, he advised caution as historical patterns don’t always guarantee repetition. Additionally, Kooner mentioned that the altcoin market is becoming interesting in the current environment, with capital flowing towards specific sectors like the Solana ecosystem and AI-based projects.
The Upcoming Bitcoin Halving Event
The next bitcoin halving is expected to occur in April of this year. During this event, miners’ rewards for adding new blocks to the blockchain will be reduced by 50%. Halvings happen approximately every four years or after every 210,000 mined blocks. The last halving occurred in 2020 when the block reward was cut from 12.5 BTC to 6.25 BTC. The upcoming halving will further reduce the block reward to 3.125 BTC per block after mining approximately 840,000 blocks. This mechanism aims to control the supply of new bitcoins and increase scarcity over time.
The current price of bitcoin stands at $52,056, representing a decrease of over 1% in the past 24 hours.
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