Bitcoin underwent its roughly quadrennial halving on April 19, reducing the mining reward by 50 per cent. Following the event, the reward for mining a new block on the Bitcoin blockchain dropped from 6.25 to 3.125 Bitcoins. From approximately $27,500 a year ago, Bitcoin is now trading at around $63,500.
Factors that drove the rally
Two factors contributed to the approximately 131 per cent increase in Bitcoin's price over the past year. The first is the halving event: Bitcoin has undergone four such events till date, each followed by a price surge. Anticipating this, investors took positions ahead of the event, driving up prices.
"The impact of halving is already factored into the price of Bitcoin," says Edul Patel, chief executive officer (CEO) & co-founder, Mudrex.
The second factor responsible for the rally over the past year is the introduction of spot exchange-traded funds (ETFs) in the United States (US) in 2024. This development has boosted institutional participation. "After the Securities & Exchange Commission (SEC) approved spot Bitcoin ETFs, massive demand has come from institutions," says Parth Chaturvedi, investments lead, CoinSwitch Ventures.
Limited supply
この記事は Business Standard の April 26, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
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この記事は Business Standard の April 26, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
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