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04/19/2024 |

Bitcoin’s Fourth Halving Has Arrived

This is the header image for the bitcoin halving blog.

Bitcoin’s Performance Ahead of the Halving

The anticipation surrounding the fourth Bitcoin halving is palpable, with less than 40 blocks remaining before the event. Bitcoin’s price surged, showcasing a nearly 4% gain over 24 hours to Friday morning, hovering around $64,700. This rally comes on the heels of Bitcoin hitting an all-time high of $73,798 on March 14, marking a significant milestone in its journey.

Spotlight on Spot ETFs

Spot Bitcoin ETFs have been a focal point in the lead-up to the halving, experiencing fluctuations in tandem with Bitcoin’s price movements. Despite recent outflows totaling $319.1 million between April 12 and April 18, spot Bitcoin ETFs have recorded significant inflows totaling $12.27 billion since their launch on January 11. Notably, BlackRock’s iShares Bitcoin Trust (IBIT) leads in fund inflows, followed by the Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB).

Understanding the Halving and its Impact

As the halving draws near, understanding its significance is crucial. The event reduces mining rewards by 50%, aiming to control the rate of new Bitcoin creation. This mechanism, outlined in the original Bitcoin white paper by Satoshi Nakamoto, underscores Bitcoin’s deflationary nature. With the upcoming halving set to decrease mining rewards to 3.125 Bitcoin per block, the market braces for potential price impacts, historically marked by post-halving price surges driven by supply-demand dynamics.