Analysts expect the next halving event, where the reward will fall once more to 3.125 bitcoins per block, to happen on either April 19 or 20. How will it affect bitcoin's price? The halving is designed to maintain bitcoin's scarcity — and simple market economics dictate that an asset's price benefits from supply falling.
Will bitcoin halve in April?
This deflationary mechanism reduces bitcoin’s supply and sometime in April mining production will reduce from 900 to 450 BTC daily. Halving usually has a positive impact on BTC prices and this one is likely to be the most consequential halving in bitcoin’s history.
How do halving events affect Bitcoin prices?
As each halving event reduces the block reward by half, the supply of new bitcoins entering circulation will continue to decrease over time. This built-in mechanism is designed to ultimately lead to higher prices as demand grows while supply diminishes. However, the relationship between halving events and bitcoin’s price is complicated.
