Bitcoin is expected to undergo a halving later this month. In less than ten days, the network has reached another crucial milestone.
The latest statistics compiled by CoinWarz revealed record-breaking mining difficulty for Bitcoin, peaking at 86.39 trillion. In the last week it rose by 3.92% and in the last month it rose by 8.87%. This indicates a 3.4% increase from the previous peak of 83 trillion on March 28th.
On the other hand, the hash rate of the Bitcoin network was found to be 626.56 EH/s, relatively close to its all-time high of 762 EH/s.
Data from CoinWarz also showed that the next Bitcoin difficulty adjustment is expected to take place on April 24, with Bitcoin mining difficulty expected to increase from 86.39 trillion to 89.21 trillion at 1,919 blocks.
Therefore, the final difficulty adjustment may be the last before the halving, scheduled for April 20th. After that, the miner reward will be split in half and will decrease to 3,125 BTC.
Historically, Bitcoin's value has tended to increase following a halving. For example, after the halving in 2012, the price of Bitcoin shot up from $12 in November 2012 to over $1,000 in November 2013.
A similar pattern was observed immediately after the halving in 2016, when the price rose from $650 in July 2016 to around $2,500 in July 2017 and finally reached a record high of $19,700 in December 2017.
Following the 2020 halving, the world's largest crypto asset by market capitalization rose from nearly $8,000 in May 2020 to a new high of over $69,000 in April 2021.
These historical trends suggest that Bitcoin's price typically rises within a year of the halving, followed by an adjustment period.
However, the current cycle is different from previous halving cycles as Bitcoin reached a new all-time high in March 2024, about a month before its upcoming fourth halving.
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