Bitcoin Post-Halving Outlook: Moderate Expectations for Analysts
The next Bitcoin "halving" is estimated to occur around April 19-20, 2024. The crypto community is preparing itself for this event. And the market analysts at two of the world's biggest banks—JPMorgan and Deutsche Bank—are warning that this cycle is unlikely to produce the post-halving price surge.
The Halving: Already Priced In?
The Bitcoin halving event reduces miners' reward by half every four years when adding a new block to the blockchain. History has shown that this event usually portends bullish tendencies within the crypto markets, considering the reduced supply of newly produced Bitcoins is likely to bring higher prices. However, Jason believes circumstances are different this year, and the effect of the halving has likely already been baked into current market prices.
Commenting on this, analysts at Deutsche Bank said that halving has historically caused market activity to increase along with price rises but that, in today's markets, the shift and mood of the investor are likely discounting to a large extent the consequences of this event.
How it will impact the miners
The move has been criticized by both banks, pointing out that it would be Bitcoin miners who will feel the pinch most post-halving. The low block rewards signal that only the most streamlined operations in mining would remain viable, likely leading to consolidation in the mining industry.
Specifically, JPMorgan points out that miners may need to shift their operations to regions with cheaper energy to stay profitable.
A Global perspective of Crypto: NFT Innovations seen to redefine the Expo 2025 world
Stepping aside from the grand macroeconomic effects of Bitcoin, we will continue to see revolutionary uses for blockchain technology that are currently unfolding across the world.
This was the most significant development from Japan, where the SBI Group announced the issuing of NFT (non-fungible token) on the XRP Ledger.
Highlighting the event's official character, MYAKU-MYAKU, these NFTs are emerging at the forefront of the intersection between culture and blockchain technology. These NFTs will be more than collectibles, representing a step toward integrating digital assets within international cultural events, which will give unique and nonfungible tokens to guests as evidence of their experience at the Expo.
The Broad Crypto Regulatory Landscape
There are continuous innovations and adaptations taking place in the crypto space, which is fighting against a changing regulatory framework. Take, for instance, the UK, which is standing literally at the precipice of new crypto staking and stablecoin laws to give the matter the clarity it deserves and, of course, to protect consumers and investors effectively.
This government proactive stance around the world really underscores the growing recognition and role that cryptocurrencies continue to play in the mainstream financial ecosystem.
Conclusion
With the Bitcoin halving approaching, there's almost an electric anticipation across the crypto market. However, significant financial analysts curbing expectations for a post-halving price surge could see investors changing their frames of mind. Developments such as Japan's NFT initiatives during the World Expo 2025 showcase broad potential use for cryptocurrencies beyond just being investment instruments. Stay on top of the freshest in crypto developments and market analysis with Dex-Trade as a trusted partner in your journey through the intricate world of digital currencies.
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