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The highly anticipated Bitcoin 'halving' event occurs.
Recent halvings have historically led to substantial increases in value over time, yet experts warn that such outcomes are not guaranteed to recur.
According to the cryptocurrency analysis company CoinGecko, the rare halving event for Bitcoin has just occurred.
This event significantly reduces the amount of new Bitcoin introduced into the market by halving the rewards that Bitcoin miners receive.
Occurring approximately every four years, this event is intended to limit the total supply to 21 million by the year 2140.
As a result, only 450 new Bitcoins will be generated daily.
Previous halvings occurred in 2012, 2016, and 2020, a mechanism that was embedded in Bitcoin’s original programming.
Following the halving, the price of Bitcoin held steady at $63,747 (£51,531), with analysts suggesting that the market had already accounted for the expected changes.
Investors remain hopeful for substantial increases, similar to past events, where, for instance, the price at the May 2020 halving was around $8,600, which escalated to over $56,000 a year later.
Andrew O'Neill, a cryptocurrency analyst at S&P Global, expressed his reservations about relying on past halving events as predictors of future pricing.
He emphasized that the halving is just one of many elements that could influence the market price, according to Mr. O'Neill.
