Looking at the price action, hash rate and transaction costs of the premier digital coin before the mining reward splits into half
To summarize the concept of halving, it is simply a process of reducing the mining rewards to half, done to maintain the supply of Bitcoin (21 million). More details on the concept could be found in my piece that I wrote about Bitcoin halving, earlier last year. So why has this become such a big deal? Simply put, the earlier two halvings in 2012 and 2016 have resulted in price gains for the premier digital coin, preceding and immediately after the event.
It remains to be seen whether we are going to get the same magnitude of gains as the two preceding events but the strong rebound from the March lows has been encouraging. In fact, it has been somewhat of a V-shaped recovery for Bitcoin as you can see in the chart below.
Whether the recent rally is solely inspired by the upcoming halving or just an improvement in the overall financial picture is something that will be confirmed in the coming days. However, other metrics for bitcoin have seen an uptick in recent activity also pointing to more than just a bottoming of price behind the strong rebound. Let’s look at some of the charts to make sense of it all.
