Bitcoin Price Stable After The Halving

The reduction in half of the rewards given to miners for securing the Bitcoin Blockchain Network, brought to the table several speculations and uncertainty about the price of bitcoin and its stability, however, today, the price of bitcoin remains apparently stable, at a rate of around 650$, demonstrating that those who stated that the Halving is a normal and scheduled process, and as such, would not have any important impact on Bitcoin’s pricing and market itself, were right.

This is not the first time it happens, previously, in 2012 there was another “Halving”. By that moment, the reward for each block of bitcoin mined was of 50 BTC, coming down to 25 BTC per block and four years later, from yesterday’s Halving, this number came down to 12,5 BTC. This was designed to prevent currency inflation and to introduce artificial scarcity.

Bitcoin Price

Just moments before the halving, the price experienced a sharp decline, from $661 to $620 (Data via Bitfinex), the panic sell-off was quickly neutralized, and now the price is hovering the $650 mark. History shows that a halving event doesn’t immediately affect the price.

In 2012 the block reward went down, from 50 BTC to 25 BTC, months later, an accelerated increase in the price occurred, mostly influenced by factors that were external and independent of its function protocol and are rather related to the low trust that people put on traditional currencies caused by the several crises that hit the financial world by those years.

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