Bitcoin has successfully undergone a highly anticipated event known as the halving, which is a programmed and systematic occurrence. This event, which takes place approximately every four years, involves reducing the Bitcoin reward that miners receive for their contribution to the network. As a result, the new supply of BTC entering the market is significantly reduced.

The reward for mining a block has now been reduced from 6.25 BTC to 3.125 BTC. It’s important to note that the halving does not directly impact the price of BTC and should not be compared to a stock split. Instead, it serves as a testament to Bitcoin’s scarcity, its decreasing rate of inflation, and its gradual journey towards reaching a maximum supply of 21 million BTC.

This time around, cryptocurrency enthusiasts have coined the term “quantitative tightening” to describe the halving. This phrase emphasizes how Bitcoin stands out as a hard, predictable, transparent, and scarce asset in a world dominated by quantitative easing, money printing, and monetary debasement.

Interestingly, Bitcoin’s price has historically experienced significant jumps in the months following its previous halvings. It remains to be seen whether this trend will continue.

Earlier this year, BTC achieved a milestone by surpassing its previous all-time high even before the halving occurred. On March 14th, it reached a price of $73,737, partially due to the rapid growth of Bitcoin ETFs in the United States. However, in recent times, Bitcoin, along with traditional assets, has retraced significantly due to a de-risking event triggered by tensions between Israel and Iran.

At the time of writing, BTC is being traded at $63,811, experiencing a 0.7% increase in the last 24 hours.

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Please note that the opinions expressed in this article are not investment advice. Investors should conduct their own research before engaging in high-risk investments involving Bitcoin, cryptocurrency, or digital assets. It is important to understand that transfers and trades are undertaken at one’s own risk, and any losses incurred are the individual’s responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it provide investment advice. It is worth mentioning that The Daily Hodl participates in affiliate marketing.

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