The long-awaited day of the 4th phase of Bitcoin’s halving is looming in the cryptocurrency sector. The
countdown to this event shows that it could happen around the final hours of Friday evening if
you are located in the Americas or Saturday morning if you are in Asia or
Europe.
According to the market metrics, the event is much anticipated and should be discounted well in advance of its actual occurrence. In contrast to unpredictable overnight barrages of rockets in the heat of the Middle East, the halving event has a clear outcome—the amount of BTC rewards
that miners get for completing a block will be reduced in half to 3.125 BTC
from the current 6.25.
This will inevitably lead to less supply from miners, but
does it change the liquidity of the overall market? We will attempt to answer that question in the coming paragraphs, and while at it, we
will also highlight some challenges related to the current geopolitical
landscape and the resulting jittery market conditions we have recently observed.
Every time 210,000 blocks are mined, the Bitcoin network’s protocol cuts in half the amount of new rewards. As highlighted by the institutional research team at Coinbase, this means that the newly
minted supply will drop from 900 Bitcoins per day to 450 Bitcoins per day. At
current market prices ($65,000 per BTC), this equates to roughly $30,000,000
worth of new supply per day or $900,000,000 per…
