Bitcoin hovers around $66,000 in global crypto markets post-halving

livemint.com:

Bitcoin (BTC) trades at $66,074 on Tuesday, marginally higher than its price a day ago, CoinDesk data showed. The fourth bitcoin-halving took place on Friday, following which the issuance rate of new bitcoin dropped to 3.125 every 10 minutes.

It is a little surprising that bitcoin is trading at muted prices post-halving. Experts explain this by saying that the price had already risen prior to the halving. In fact, it’s the first time in Bitcoin history that the price had increased before the event. 

Ethereum on Tuesday traded at $3,180, BNB at $605 and Solana at $154, CoinDesk reported. 

Halving means the rate of issuance is cut in half. The halving refers to an alteration in the foundational blockchain technology of this cryptocurrency, aimed at decreasing the pace of generating new bitcoins.

Since there can only be 21 million bitcoins, and when newer bitcoins are fewer in number, this is likely to impact bitcoin prices.

ALSO READ: Bitcoin falls 8% in five days; here are 4 reasons behind the plunge

The muted price rise after halving is seen as a result of the price already factored in.   

Parth Chaturvedi, Investments Lead, CoinSwitch Ventures believes that the markets have already priced in the halving, because of which there was not any major volatility close to the event. 

“Broadly prices are lower from their recent highs due to geopolitical tensions, but we can expect near term downward pressure as Miners and ecosystem participants adjust to the new supply dynamics. The 4th halving brings BTC’s annual inflation to less than gold’s and will further push investors to explore it as ‘store of value’ asset class," said Chaturvedi. 

Shivam Thakral, CEO of BuyUcoin believes that layer 2 tokens have outperformed bitcoin.