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Decoding Crypto: Blockchain Changes And Price Shifts

Discover how blockchain is transforming the crypto landscape and uncover the reasons behind sudden price shifts in our detailed guide on crypto dynamics.
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Unlike altcoin spaces, the Bitcoin blockchain is not accustomed to constant innovation and changes. This reputation has earned and maintained its top position as the leader of the crypto world, which is no small feat in the ever-changing world of digital currencies. 

However, when Bitcoin changes, the entire crypto ecosystem feels the reverberations. Few events create as much hype and speculation as the halving, which occurs once every four years on the BTC blockchain and slices miner rewards in half. 

The main reason for this is to drive scarcity, one of the main reasons Bitcoin continues to be the most coveted crypto and the one with the most significant market capitalization. No matter what happens, investors are still looking for the best exchanges where to buy Bitcoin

While all cryptocurrencies can expect changes in the aftermath of this event, 2024 is different from previous years. The reason is simple: the Bitcoin market has also changed fundamentally.

Overview 

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A grayscale shot of gold and silver crypto currencies

It’s important to have a very clear idea of what the halving represents to get a better idea of what investors can expect. Right from the launch, Bitcoin had a predetermined maximum supply of twenty-one million coins. 

No additional coins will be released after this limit is achieved. At the moment, there are only about two million BTC left, and investors predict that they will all be mined by 2140. The halving, as the name implies, refers to the halving of the rewards the miners get for validating transactions and getting them added to the blockchain.

The halving occurs approximately once every 210,000 blocks or once every four years. All crypto community members widely anticipate the event because of its effects on pricing. While the impact is not immediate, historical data suggests that the prices rally anywhere between five and twelve months after the halving. 

After all of the previous ones, the price point reached a new all-time high. For instance, Bitcoin’s all-time high levels of 2021 resulted from the 2020 rally.

What makes 2024 different is that the price has already surpassed an all-time high roughly two months ahead of the halving. This is unusual and a sign most investors take to signify that the marketplace is becoming more mature and reliable. 

The approval of the exchange-traded funds was essential for market growth. Investors had been anticipating it for a long time, so when the asset class was finally officially approved, it didn’t take long to deliver excellent results.