As the investors are anticipating the halving, which could further fuel the instability in the currency market, the price of Bitcoin went over $64,000 Friday bouncing back from below $60,000.
As of 9:17am ET, the price stood at $64,640.00, a 2% increase, while other cryptocurrencies Ether and Solana also secured gains of 3% and 10% respectively, reported CNBC.
The Bitcoin investors are getting ready for the halving event which is to take place this week, in which the reward for the miners is cut in half. It occurs every four years when the code of the digital currency is written.
Eventually, it slows down the supply of Bitcoin in the market.
According to experts at Amina, a cryptocurrency bank, halving has impacted investor behavior as they are offloading the bitcoins. Miners are looking to shore up their balance sheets.
The outlet, citing cycles of bitcoin wrote that the “halving preceded a bull run for the cryptocurrency.”
“Currently, miner balances are near an all-time low. This comes at the back of heavy selling from miners as they scramble to take profits ahead of the halving,” note by Amina said.
The digital currency was up by 50% with the market price over $73,000 last month.
The major effect on the bitcoin price is from the US Federal Reserve because rallies are expected in the post-halving event. After all, the decisions regarding interest rates always remain unknown.
Bitcoin is considered as a hedge against inflation because of a blue chip token. If you intend to stay for a long time in the game, it is prudent to buy the coin when it is below $70,000.
