The Bitcoin network has just experienced a new halving, which has reduced the block reward for miners from 6,25 BTC to 3,125 BTC.
The issuance of new bitcoins has been reduced again to the block height #840.000 of the blockchain network. As established in the cryptocurrency protocol, a new BTC block reward halving event occurred after 210.000 blocks were mined.
This historic event, known as halving, occurred on Saturday, April 20, at 02:10 am (UTC+2 – Spain), as planned.
Bitcoin experiences a new halving
This is the fourth time that the Bitcoin network has experienced a halving and that block miners, who are tasked with validating and confirming transactions on the network, have seen their rewards reduced by 50%. Now, with the arrival of this event, Bitcoin miners will begin to earn 3,125 BTC for the creation of each new block, instead of the 6,25 BTC they were receiving until a few minutes ago.
According to the market price of Bitcoin, the miners' block reward is currently around $201.500, with the cryptocurrency trading at around $64.500 per unit at the time of writing.
Source: CoinMarketCap
Hours before the halving, the price of BTC recovered slightly. The leading cryptocurrency had experienced a price drop on April 18, falling to around $59.500, after several reports spread about Israel's attack on a military base in Iran. However, rumors that tensions between Iran and Israel could not escalate any further and the proximity of the new halving caused a rebound in the price of the cryptocurrency, which closed on Thursday with a value of around $62.000 per BTC.
In addition to this, in the last few hours, the price of BTC has been trading higher, rising by 1,7%, according to the data from CoinMarketCap.
Will BTC Demand Surge Be Triggered?
The halving directly affects miners, reducing the amount of bitcoins they get for creating a block. However, by reducing the amount of new bitcoins entering the market, the halving also has consequences on the price of the cryptocurrency and, as reported in this medium, several analysts consider that this new event will boost the massive demand for BTC in the market.
Since the total supply of Bitcoin is limited to 21 million units, and the number of new bitcoins put into circulation in each block is halved when the halving comes, the supply of BTC will become increasingly limited, potentially triggering massive demand. Added to this is the growing interest in Bitcoin from traditional investors and companies, attracted by spot ETFs listed on US exchanges.
Continue reading: More wealth managers are investing in Bitcoin, attracted by spot ETFs
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