By Bitcoin’s halving, due in May, is easily the most anticipated event in the crypto industry.
The event occurs after every 210,000 blocks are mined and usually takes place every four years. After. every halving, rewards received by miners per block mined is cut exactly by 50%.
Currently, miners receive 12.5 BTC per block mined. This figure will drop to 6.25 BTC after May.
A few analysts believe the upcoming supply cut is priced in by the markets in the first half of 2019, when prices rose from $4,000 to $13,800.
Jason Williams, co-founder of digital asset fund Morgan Creek Digital, tweeted in December that markets would not move as a result of the halving. “It will be a non-event,” Williams said.
However, renowned analyst @CryptoBull thinks halving is not just a news event and could strengthen the bid tone around the top digital currency.
A supply deficit could be seen only after halving, Hence, the event can’t get priced in before it happens, according to @CryptoBull.
While that makes sense, litecoin’s big post-halving sell-off is a lesson to bitcoin bulls that halvings are not always bullish.
Litecoin’s reward halving took place on Aug. 5, 2019. The cryptocurrency, which traded around $105 in early August, is currently priced at $56 on major exchanges.