According to data provided by Nicehash, the Bitcoin halving event is just 30 days away. The much-anticipated event is expected to occur on April 12, marking yet another era for the leading blockchain.
Bitcoin halving takes place once in four years to decrease the supply of newly mined coins. With the upcoming halving, Bitcoin’s block reward will be reduced to just a mere 3.125 BTC.
During previous halving cycles, the Bitcoin price would surge substantially a few months after the event. If history is any guide, bulls might expect the upcoming block reward reduction to be another major bullish catalyst.
Main bullish catalyst
Prominent investors of the likes of Galaxy Digital boss Mike Novogratz see the halving event as the main bullish catalyst that is going to drive up the price of Bitcoin.
In fact, one trader appears to be convinced that the price of Bitcoin could reach a staggering $200,000 even before the halving event occurs. “Always remember, prices are set on the margin. Supply matters,” he wrote.
Blockstream CEO Adam Back is convinced that the Bitcoin price could approach the $100,000 level now that halving is just around the corner.
Bearish views
However, there are some skeptics of the likes of longtime Bitcoin detractor Peter Schiff who have downplayed the impact of halving. As reported by U.Today, Schiff recently noted that the current Bitcoin supply would not be reduced with new coins. Hence, if there is strong selling pressure from current holders, the ball might still end up in the bears’ court.
Due to the rapid block reward reduction, miners will find themselves in a serious predicament. Those who are not sufficiently prepared for the impact of halving might find it hard to remain operational. In such a case, there might be a sudden drop in Bitcoin’s hashrate if there is a rapid exodus of miners. However, difficulty adjustments are expected to mitigate their dire financial conditions by making mining more accessible.
