Bitcoin experienced its quadrennial halving at 8:10 p.m. ET in New York on Friday, dropping block rewards from 6.25 BTC to 3.125 BTC.
Immediately after the event, the price of Bitcoin (BTC) remained largely unchanged at around $63,600. According to Coinbase, it was trading 1.15% higher in 24 hours at the time of publication.
The largest cryptocurrency is now 13% below its all-time high of $73,000 in March. It is the first time that Bitcoin has entered a halving event so soon after reaching a new price record.
Read more: Bitcoin’s Block Reward Drops 50% After Halving in 2024
Although Bitcoin has historically reached new highs in the months following a halving, analysts warn that this time could be different. JPMorgan researchers – and most teams in the crypto industry – say the halving is already priced in.
In the months following Bitcoin's last halving in 2020, the cryptocurrency reached its previous all-time high of $69,000. Also in 2016 the value was 20,000 US dollars.
Read more: The history of Bitcoin halvings – and why this time could be different
As Iran-Israeli tensions continue, geopolitical tensions could still weigh on crypto markets. On Thursday night, Israel carried out a retaliatory attack against Iran. Bitcoin plunged below $60,000 following reports of the strike. On Friday, it erased some losses and traded in the mid-$60,000 range for most of the day.
Samir Kerbage, Hashdex's chief investment officer, told Blockworks via email that regardless of the “impact” of the halving, the company believes that “the investment case for Bitcoin remains as strong as ever.” “Institutional interest is increasing amid a favorable macro environment and positive on-chain developments.”
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