The Bitcoin halving, a technical event that occurs on the Bitcoin network every four years and reduces the cryptocurrency supply in half, is scheduled to occur in around three days.
Oklink, a blockchain explorer, indicates that the countdown is 3 days and 15 hours as of press time, with an estimated date of April 20 and 526 remaining blocks. The halving cuts Bitcoin miners' earnings by half, as stipulated by the Bitcoin blockchain code, and is slated to occur every 210,000 blocks. This time, mining rewards will be halved from 6.25 BTC to 3.125 BTC.
With only a few days remaining until Bitcoin's fourth halving, the price has dropped significantly, reaching up to 16.65%, according to CryptoQuant's most recent analysis. This drop has caused significant fear and anxiety among cryptocurrency investors and traders.
While selling pressure remains on the market, CryptoQuant identifies a historical trend that frequently occurs before each halving cycle: a price collapse, a pattern that has occurred several times previously.
For the second halving, the BTC price fell by 40.36%, reaching $465 before skyrocketing to $19,600. Similarly, before the third BTC halving, the Bitcoin price fell 20.35%, reaching a low of $8,078 before rising to a high of $69,000.
In the current cycle, the price reduction thus far stands at 16.65%, which CryptoQuant believes might be a typical and expected occurrence, adding that there may be no cause for concern because this scenario repeats itself in each cycle, albeit with variable percentages.
Expectations for Bitcoin halving event
According to Bloomberg, citing Crypto.com exchange CEO Kris Marszalek, the Bitcoin halving event may prompt some selling due to buy-the-rumor, sell-the-news trading, but the event is poised to boost the price of the largest digital asset in the long run.
The halving event has historically been a tailwind for prices, though there are doubts about whether a repeat is likely given that Bitcoin already hit all-time highs in mid-March, something it has never done ahead of the event.
At the time of writing, BTC was down 5.68% in the last 24 hours to $62,555 as volatility persisted on the crypto markets.