The Bitcoin network has successfully completed its highly anticipated “halving,” a major software update that occurs every four years. However, this incident dealt a potential blow to companies that make profits by keeping the BTC network running smoothly and securely.
The halving event reduces the amount of Bitcoin distributed from the network to companies, called miners, known as mining rewards, in exchange for verifying transactions. This change went into effect around 03:00 UTC on Saturday, according to data from analytics websites mempool.space and Blockchain.com. After the halving, the Bitcoin price remained relatively stable at $64,000.
Kok Kee Chong, CEO of Singapore-based AsiaNext, a digital asset exchange for institutional investors, commented on the incident. “As expected, the halving was fully priced in, so price movement was limited,” he said, adding: “Now the industry will have to wait and see if a rally can occur in the coming weeks when institutional interest continues.”
However, in the near term, bullish sentiment towards Bitcoin may wane due to macroeconomic impacts. These include the FED’s signals that interest rate cuts have been suspended and the ongoing conflicts in the Middle East. Edward Chin, co-founder of Parataxis Capital, shared his thoughts on the subject. “We may experience some decline in the next quarter until there is clarity on the macro front,” Chin said. “In the meantime, the primary driver of price will likely continue to be ETF fund flows.”
*This is not investment advice.
