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Bitcoin halving: What you need to know before it happens!

Bitcoin halving: What you need to know before it happens!

Just under a month until the Bitcoin halving, which means investors still have time to make the necessary preparations before the halving actually takes place. In the past, a new all-time high has followed each halving. So we are very curious to see what the Bitcoin halving has in store for us this year.

What is Bitcoin halving?

A Bitcoin halving is an event that occurs once every four years and halves the speed at which new Bitcoins are generated. One of the key features of Bitcoin is that its supply is limited. The maximum number of Bitcoins is 21 million. Once this last Bitcoin is produced, the network will stop producing more. The halving is a built-in process in the design of Bitcoin to limit inflation and increase the scarcity of the digital currency.

Bitcoin miners are selling their reserves

However, there is one group that does not particularly like the Bitcoin halving, namely the miners. They will lose half of their revenue. After the halving, miners will only receive 3,125 BTC for creating a block, compared to the current 6.25 BTC. So miners will earn 50% less after each halving. Miners have already sold over 6,000 BTC in the past month, which is about $384 million.

The more than 6,000 BTC that miners have sold have had little impact on the price because Spot Bitcoin ETFs are currently buying a lot of Bitcoin.

More and more whales, which are investors who own more than 1,000 BTC, are choosing to sell a portion of their holdings. There has been a 4.83% decrease in the number of addresses with 1,000 BTC or more.

New all-time high or a correction?

Within the next few weeks, the endless speculation will begin. Will the long-awaited correction happen after the halving? Bitcoin has never experienced such a strong period in the history of cryptocurrency.

We are heading for a few exciting weeks with Bitcoin! We, for one, cannot wait to see what Bitcoin will do during this halving.