Bitcoin’s recent halving event, which occurred on April 19, has been a topic of anticipation and discussion in the cryptocurrency industry. However, it seems that the halving has not caused any major disruptions to the industry. So, did we accurately assess the situation, or are investors simply lacking patience? Let’s take a look at the data as the crypto weekend unfolds, known for its negative market sentiments.
It’s worth noting that Bitcoin was created in response to the 2008 financial crisis, a fact that may not be widely known among investors. Satoshi Nakamoto, the creator of Bitcoin, attributed the crisis to irresponsible fiscal and monetary policies. Their goal was to develop a new form of digital asset that would serve as “sound money.”
To achieve this, Nakamoto incorporated the halving mechanism into the original Bitcoin algorithm. Halvings occur approximately every four years, after 210,000 blocks have been added to the Bitcoin blockchain. Once the 210,000th block is added, the reward for mining new blocks is cut in half.
In the past, halvings have resulted in price surges and extended periods of bullish market conditions. However, there is a notable difference with the fourth Bitcoin halving this time, which is the emergence of new spot Bitcoin ETFs.
According to data from Coinbase, Bitcoin has experienced significant value surges following each halving event. After the first halving, it rallied by 923% in a six-month period. Similarly, after the second halving, it saw a 37% increase in the same timeframe. Following the third halving, Bitcoin’s value surged by 82% in six months.
There is a strong possibility that Bitcoin could reach the $100,000 mark at some point this year. With Bitcoin’s current price at $63,115, this suggests a potential rally of around 50%.
Speaking of Bitcoin’s current value, it currently stands at $63,115.38, representing a slight decrease of 0.1% compared to an hour ago and a 1.3% decline since yesterday. The current value of Bitcoin is 1.2% lower than its previous value.
The Bitcoin network has achieved another significant milestone, with its daily transactions reaching a peak of 927,000. This surpasses the previous record of 724,000, set in December 2023, as reported by on-chain data.
The launch of Runes, a new token standard on the Bitcoin blockchain, has caused a significant surge in transaction activity for Bitcoin. Since its launch following the halving on April 20, Runes has been responsible for over two-thirds of all Bitcoin transactions, showcasing its dominance in the market. Runes account for over 2.38 million transactions processed, making up 68% of the total.
On April 23, there was a significant surge in activity on Runes, with over 750,000 transactions recorded. However, the next day saw a notable decline in the transaction count, dropping to 312,000, less than half of the previous day’s total.
There seem to be differing opinions among industry experts regarding the potential of Runes to provide a stable income stream for Bitcoin miners. Casey Rodarmor has developed a new protocol that is touted as a highly efficient method for generating tokens on the Bitcoin network, surpassing the capabilities of BRC-20.
While Bitcoin’s price movements before and after the fourth halving have been disappointing, the asset did regain some momentum following the Iran-Israel attacks and surpassed $65,000 as the block rewards were reduced.
Bitcoin has experienced a significant drop in value over the past few days, reaching a multi-day low of $62,400. According to CoinGecko, Bitcoin’s market cap has fallen to $1.240 trillion, and its dominance over other cryptocurrencies remains below 51%.
The state of the altcoins space is concerning at the moment, with Solana experiencing a significant and abrupt drop in price. The token has seen a drop of over 5% within a single day and is currently struggling to surpass the $140 mark. Dogecoin has also experienced a decrease of 3.5%, while Cardano, Avalanche, Shiba Inu, and Polkadot have seen declines ranging from 2.75% to 3.6%.
