Volatility is bound to pick up with the major halving event coming to slash the supply of new BTC in half.
Key Points:
- Bitcoin prices rise to $66,500.
- Halving looms at end of week.
- Volatility may spiral out of control.
- Bitcoin BTCUSD moved higher on Monday, turning the weekend dump into an early-week pump. Prices advanced to levels above $66,500, up from a Saturday bottom of $60,800 per token. With today’s leg up, Bitcoin is on track to snag at least a 7% move in a two-day upside swing. But… volatility might get unleashed soon.
- It’s Halving week and markets will be holding their breath, traders will be on the edge of their seats. Once every four years or so, Bitcoin undergoes what’s called a “halving” — an event which slashes Bitcoin mining rewards in two, removing 50% of the supply of new Bitcoin. Last halving occurred on May 11, 2020 and reduced the Bitcoin reward to 6.25 BTC.
- This year’s halving is projected to happen anywhere between April 18 and April 20. It will drop BTC rewards to 3.125. Historically, Bitcoin has seen elevated demand in the week following the halving. But is it different this time? Crypto volatility can occasionally go off the chart, with or without a trigger. Keep a watchful eye over your digital asset positions this week.