Post-Halving Report: Brazil Could be New ‘Demand Source’ for Bitcoin
When Brazil’s central bank lowered its interest rates to 3%, potentially driving out some investors, it may have opened the doors for BTC.
Bitcoin Halving Means Miners Will No Longer Be Biggest Sellers of BTC
After the halving, crypto exchanges selling Bitcoin, which they collected in trading fees, may pose the biggest threat to the ongoing Bitcoin rally as miners earn less BTC.
The Market Perceives Positive Sentiment Heading Into the 2020 Bitcoin Halving
Looking at the perpetual funding rate, put–call ratio and Spend Output Profit Ratio to gauge the current market view leading up to crypto’s most-anticipated event.
What is Bitcoin halving?
An event that halves the rate at which new Bitcoins are created. It occurs once every four years.
As many know, Bitcoin’s (BTC) supply is finite. Once 21 million coins are generated, the network will stop producing more. That is one of the main reasons Bitcoin is often referred to as “digital gold” — just like with the yellow metal, there is only a limited amount in the world, and someday, all of it will have been extracted.
Right now, there are around 18 million BTC in circulation, which is roughly 85% of the total cap — but it doesn’t mean that the cryptocurrency is about to reach its limit any time soon. The reason is the protocol, which has been coded into the blockchain from the very start: Every 210,000 blocks, it performs the so-called Bitcoin “halving” or “halvening,” and producing new coins becomes more difficult — just like in gold mining where finding new deposits becomes more challenging over time.
More specifically, the protocol cuts the block reward in half. So, every time a Bitcoin halving occurs, miners begin receiving 50% fewer BTC for verifying transactions.