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The latest in financial news: Bitcoin has completed its fourth halving this week.

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Bitcoin’s Latest Halving

Over the past week, Bitcoin completed its fourth halving. This has cut the reward rate for miners from 6.25 BTC for every block to 3.125 BTC for every block. When Bitcoin first started the reward for mining blocks was 50 BTC then after the first halving in 2012 it was reduced to 25 BTC. The second halving in 2016 reduced the reward to 12.5 BTC. Then the halving in 2020 reduced the reward rate to 6.25 BTC.

Previous Three Halvings

Looking into the past of the Bitcoin halvings and the impact it has on price can be inspiring to new investors and give FOMO. Over the past three halvings, the price of Bitcoin has usually been low or decreased. But within 12-18 months, the price of Bitcoin skyrockets to new all-time highs. The previous halvings have seen the price of Bitcoin explode to new all-time highs. While no one can predict the future or the price of Bitcoin, there are times when history rhythms.

There is one big difference in this halving compared to the others. This halving will have the Bitcoin ETF. Since the ETF, billions of US dollars have flowed into Bitcoin as new investors look to buy Bitcoin. This caused Bitcoin to rise to over $70,000 before the halving. With billions of dollars flowing into Bitcoin. Bitcoin has been dropping in price over the past few weeks. The main contributing factors to the price decrease are the uncertainties of war in the Middle East, the US government potentially selling a portion of their Bitcoin, and a few other geopolitical events. Since Bitcoin is decentralized, its value is from its users which can lead to crazy price fluctuations.

Bitcoin’s Future

With the halving complete, what does the future of Bitcoin look like? There are many reasons to be bullish in the long term for Bitcoin. Looking at the supply side, we can see that the future rewards of Bitcoin miners will decrease. Looking at the demand side, the second wave of new investors (managed funds) in the US spot Bitcoin ETFs and the approval of the Hong King Bitcoin ETF this week. The increase in demand and decrease in supply will cause an increase in Bitcoin until it reaches a new equilibrium.

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