Halving is a common occurrence for Bitcoin (CRYPTO: BTC), with three previous halvings already under its belt. However, the fourth halving, which took place on the evening of April 19, marks a significant turning point for Bitcoin as it enters a new era unlike any before.
Here are three key reasons why Bitcoin’s fourth halving stands out from the previous ones.
The institutions have arrived: Unlike past halvings where retail investors dominated, institutional investors are now actively participating in the market. The introduction of spot Bitcoin ETFs has sparked significant demand, with these funds purchasing Bitcoin at a rate much higher than its daily production, indicating a shift in the market dynamics.
Supply shortage before the halving: Leading up to the fourth halving, the number of coins available on exchanges saw a significant decline, indicating a supply shortage. This scarcity, coupled with the arrival of Bitcoin ETFs, led to Bitcoin hitting an all-time high of $73,000 in mid-March, a first before any halving event.
Bitcoin surpasses gold: With the inflation rate of Bitcoin dropping below 1% after the fourth halving, it officially becomes scarcer than gold. This newfound scarcity, combined with the predictability of Bitcoin’s supply, positions it as a strong contender to overtake gold as the ultimate inflation hedge.
As Bitcoin continues to evolve post-halving, it is expected to exceed expectations once again, with the convergence of spot Bitcoin ETFs, a supply shock, and a minimal inflation rate shaping the future of the cryptocurrency.
Only time will tell the full impact of this unique halving event, but all signs point to a transformative moment for Bitcoin. With the current market conditions and Bitcoin’s characteristics, the potential for Bitcoin to outperform expectations is high.
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In conclusion, while Bitcoin’s fourth halving marks a significant milestone, it’s essential to consider all investment options and conduct thorough research before making any financial decisions.