The next halving Bitcoin is scheduled to go live in May 2024 and some analysts are already thinking about what effects it will have on the cryptocurrency.
El halving It is an automated event in which the Block reward of a cryptocurrency is split in halfIts goal is to reduce the level of emission and encourage mining through proof of work.
The first cryptocurrency to implement this system was Bitcoin, as it has a finite supply (of 21 million, of which more than 19 have already been extracted). By implementing el halving Bitcoin developers ensured that the cryptocurrency would always be deflationary and that, therefore, its value would gradually increase.
What will happen to Bitcoin after the next halving?
Some analysts point out that, following a Stock-to-flow (S2F) live model, in which the Bitcoin shortage To quantify its value, it is possible that the next halving serve to increase the price.
The above analysis is supported by that of Josh Rager, a cryptocurrency analyst, who believes that the Bitcoin's true potential will appear after the halving by 2024, when scarcity will cause the price to rebound.
The last halving which took place on May 18, 2020 reduced the block reward from 12,5 BTC to 6,25 BTC. The next one will reduce the reward to just 3,125 BTC per block and so on, until the reward is reduced to a single Satoshi (0,00000001 BTC) per block.
Bitcoin is less volatile than S&P 500 stocks
Bitcoin has been trading almost horizontally above the $19.000 barrier for the past few weeks. However, today it has broken through the psychological barrier of $20.000 and is trading at $20.644 at the time of writing, according to data from CoinMarketCap.
These weeks of horizontal movements and the resistance at the $19.000 barrier have allowed Bitcoin to free yourself from much of your volatilityFor the first time since 2020, cryptocurrency volatility has fallen below that of the Nasdaq and S&P 500 indices and has remained for almost 40 days moving in a lateral strip.
This results in Bitcoin volatility has dropped by more than 40% from its point of greatest volatility, reached in February 2022.
Meanwhile, the Cboe Volatility Index, a measure of price fluctuation for the S&P 500, is below 30, indicating “uncertainty” in the market. On the other hand, the Nasdaq volatility index has experienced a del% increase 90.
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