Bitcoin’s halving event, which took place on April 19, was highly anticipated in the cryptocurrency industry. However, it passed without causing any major disruptions. This raises the question of whether investors accurately assessed the situation or simply lacked patience. Let’s take a closer look at the data as the crypto weekend unfolds, known for its negative market sentiments.
Bitcoin’s halving mechanism is an important aspect of its design. It was created in response to the financial crisis of 2008, which is not widely known among investors. The goal was to develop a new form of digital asset that would serve as “sound money.” The halving takes place 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 reduced by half.
Past halvings have resulted in price surges and extended periods of bullish market conditions. However, there is a notable distinction with the fourth Bitcoin halving this time. The emergence of new spot Bitcoin ETFs has added a new dynamic to the market.
Based on data from Coinbase, Bitcoin has experienced significant price 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 sitting at $63,115, that suggests a potential rally of around 50%.
Currently, Bitcoin’s value 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 is 1.2% lower than its previous value.
The Bitcoin network has achieved another significant milestone, with daily transactions reaching a peak of 927,000, surpassing the previous record of 724,000 set in December 2023, according to on-chain data.
The launch of Runes, a new token standard on the Bitcoin blockchain, has caused a significant surge in transaction activity. Since its launch following the halving on April 20, Runes has been responsible for over two-thirds of all BTC transactions, 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, with the transaction count dropping to 312,000, less than half of the previous day’s total.
Industry experts have differing opinions on the potential of Runes to provide a stable income stream for BTC miners. This new protocol developed by Casey Rodarmor 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 halving have been disappointing, it did regain some momentum following the Iran-Israel attacks and surpassed $65,000. However, in recent days, Bitcoin’s value has experienced a significant drop, reaching a multi-day low of $62,400. Its market cap has fallen to $1.240 trillion, and its dominance over other cryptocurrencies remains below 51%.
The altcoins space is also facing challenges. Solana has experienced a significant drop in price, falling below the $140 mark. Dogecoin has decreased by 3.5%, while Cardano, Avalanche, Shiba Inu, and Polkadot have seen declines ranging from 2.75% to 3.6%.