Last week on Friday, the halving of the fourth bitcoin block reward due every four years was successfully completed, the token payments for a unit of work were reduced from the previous 6.25 bitcoins to 3.125, thus curbing the inflation of the system and postponing the final, 21 millionth mining.
The crypto market was moved by the bitcoin block reward halving
In the past, the block reward halving was usually followed by significant volatility in the bitcoin exchange rate, and this fluctuation appeared in the exchange rate even now, to a much lesser extent than expected, and in fact: the exchange rate clearly started to rise dynamically after an initial, minor correction.
The token’s subscription ranged between 63,500 and 64,500 dollars around the halving, but it was able to rebound significantly from here, the exchange rate has since risen by nearly 5 percent, and currently you have to pay 66,434 dollars for one token.
At the same time, despite the clear strengthening of the exchange rate, the markets do not seem completely calm: the bitcoin sentiment index, where a value of 100 represents unbridled greed and zero represents complete panic, was at 57 on the day before the halving, as low as it had previously been. it hasn’t been for months, and although the indicator has since been able to correct itself to its current value of 71, looking at the numbers of the past months, we can’t consider this a sign of a particularly strong buying surplus either.
At the same time, this uncertainty is not clearly visible in the bitcoin exchange rate, it could easily be due to the stabilizing effect of ETFs and the increasingly institutionalization of the token, which also calmed down the exchange rate of the second largest cryptocurrency, ether. The smaller token closely followed bitcoin in the days leading up to the halving, taking a relative change, and this close link remained even after the event.
However, the really big positive effect was brought about by the block reward halving among smaller tokens: Binance coin (BNB) by almost 10 percent, solana by 12 percent, ripple by 10.5 percent, Elon Musk’s favorite meme token, and Shiba Inu It has strengthened by 21.5 percent in the past week.
The increased interest in smaller cryptocurrencies is also reflected in the capitalization of the entire alternative currency market: the market value of the crypto market increased from 2.23 trillion dollars before the halving to 2.43 trillion dollars,
i.e. the value of the sector jumped by the entire Hungarian GDP in the last few days.
Which should not be so surprising given the continued ability of bitcoin ETFs to raise capital. BlackRock’s IBIT fund increased its capital yesterday for the 69th day in a row, making it one day away from becoming one of the ETFs with the longest uninterrupted capital inflows.
The competition of bitcoin ETFs is still led by the Greyscale fund with its managed capital of 24 billion dollars, but BlackRock’s IBIT, with its assets of more than 17 billion, is following them more and more closely. In third place is Fidelity’s FBTC with a capital of 9.9 billion.
