Bitcoin was trading at $61,688 on Thursday morning after briefly dropping below $60,000 on Wednesday, with volatility increasing in the lead-up to a highly-anticipated software update in the blockchain called halving.
The largest cryptocurrency has dropped by about 18 per cent since it reached a record $73,797 on March 14.
Bitcoin halving countdown - when will it take place?
Halving – which takes place every four years – is scheduled for as soon as Friday. It has long been touted as a positive catalyst for cryptocurrency prices since it reduces supply of new tokens from the blockchain.
“Lower supply is fundamentally supportive of an asset’s valuation, but we might not see a clear kneejerk reaction to Bitcoin halving as most of it is already priced in,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
How will Bitcoin halving impact prices?
Historically, it’s proved a catalyst for prices, however, there are doubts whether a repeat is likely this time around, given Bitcoin already hit a record high in mid-March.
Previous Bitcoin halvings in 2012, 2016 and 2020 were followed by massive rallies in its price. For instance, a year after the May 2020 Bitcoin halving, the crypto’s price was up more than 545 per cent.
“This current cycle stands out from all the other previous cycles as the Bitcoin price has already achieved a new all-time high – even before the halving,” Bitfinex analysts said in an April 8 report.
They predicted that Bitcoin's price would soar about 160 per cent in the 12 to 14 months after this year’s halving, which could push the token to an all-time high of more than $150,000.
What does Bitcoin halving mean?
Bitcoin mining is an energy-intensive process, in which miners use specialised computers to validate transactions on the blockchain and earn a reward in the form of the token.
That reward, which comprises the vast majority of mining revenue, is cut in half every four years due to the preprogrammed halving event.
The upcoming halving will reduce the amount of Bitcoin reward to 450 tokens in daily production, from 900.
Halving involves a change in the token’s underlying blockchain technology that is designed to reduce the rate at which new Bitcoins are created.
However, concerns over whether the halving has already been priced in against the backdrop of a risk-off investment environment have prompted a rout in Bitcoin prices.
“Wednesday’s higher-than-expected US inflation prints have raised many eyebrows, and Saturday’s conflict escalation in the Middle East was first seen in the always-open, risk sentiment betting line, the digital assets market. Prices were quick to retrace, with Bitcoin reaching lows close to $60,000,” according to Manuel Villegas, next generation research analyst at Swiss private bank Julius Baer.
“Even if Bitcoin shares some qualities with gold, the latter remains the go-to risk-off asset, and gold prices remained high amid the recent stress, while Bitcoin’s prices retraced.”
The upcoming and fourth Bitcoin halving is unlikely to come with immediate effects, as the deceleration of supply growth is likely to be felt over the course of the next few months, Mr Villegas explained.
Bitcoin hit an all-time high in March as investors cheered new US spot Bitcoin ETFs and bet on the entry of new institutional money into the asset class.
The ETFs launched by traditional asset management firms in January have attracted billions of dollars.
Bitcoin ETFs “brought in a tremendous amount of interest and net new flows into Bitcoin preceding the halving event, whereas in the past, we’ve seen price levels right after the halving event bring in those new flows”, Thomas Perfumo, head of strategy at crypto exchange Kraken, told Reuters.
Other bullish events in the industry also contributed to the gains, researchers at crypto analytics firm Kaiko said in a note.
The US Federal Reserve is expected to cut interest rates this year, which could boost risk assets such as cryptocurrencies.
The confluence of ETFs, quantitative easing and halving will define the future contours of the market, said Stefan Kimmel, chief executive of crypto exchange M2.
He added that regulatory bodies are likely to remain focused on the core characteristics of cryptocurrencies rather than transitory price drivers.
Each Bitcoin halving sharpens the narrative of Bitcoin as not just a currency, but a scarce digital asset, akin to digital gold, said Ben Zhou, co-founder and chief executive of crypto exchange Bybit.
“This upcoming halving in 2024 will thrust Bitcoin into an era of unprecedented scarcity, making it twice as rare as gold,” he added.
RESULT
Arsenal 2
Sokratis Papastathopoulos 45 4'
Eddie Ntkeiah 51'
Portsmouth 0
T20 World Cup Qualifier
Final: Netherlands beat PNG by seven wickets
Qualified teams
1. Netherlands
2. PNG
3. Ireland
4. Namibia
5. Scotland
6. Oman
T20 World Cup 2020, Australia
Group A: Sri Lanka, PNG, Ireland, Oman
Group B: Bangladesh, Netherlands, Namibia, Scotland
The biog
From: Upper Egypt
Age: 78
Family: a daughter in Egypt; a son in Dubai and his wife, Nabila
Favourite Abu Dhabi activity: walking near to Emirates Palace
Favourite building in Abu Dhabi: Emirates Palace
MATCH INFO
Uefa Champions League semi-finals, second leg:
Liverpool (0) v Barcelona (3), Tuesday, 11pm UAE
Game is on BeIN Sports
Six things you need to know about UAE Women’s Special Olympics football team
Several girls started playing football at age four
They describe sport as their passion
The girls don’t dwell on their condition
They just say they may need to work a little harder than others
When not in training, they play football with their brothers and sisters
The girls want to inspire others to join the UAE Special Olympics teams
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
More from Rashmee Roshan Lall
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Tips to avoid getting scammed
1) Beware of cheques presented late on Thursday
2) Visit an RTA centre to change registration only after receiving payment
3) Be aware of people asking to test drive the car alone
4) Try not to close the sale at night
5) Don't be rushed into a sale
6) Call 901 if you see any suspicious behaviour
House-hunting
Top 10 locations for inquiries from US house hunters, according to Rightmove
- Edinburgh, Scotland
- Westminster, London
- Camden, London
- Glasgow, Scotland
- Islington, London
- Kensington and Chelsea, London
- Highlands, Scotland
- Argyll and Bute, Scotland
- Fife, Scotland
- Tower Hamlets, London
ONCE UPON A TIME IN GAZA
Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi
Directors: Tarzan and Arab Nasser
Rating: 4.5/5
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The years Ramadan fell in May
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The specs: 2018 Opel Mokka X
Price, as tested: Dh84,000
Engine: 1.4L, four-cylinder turbo
Transmission: Six-speed auto
Power: 142hp at 4,900rpm
Torque: 200Nm at 1,850rpm
Fuel economy, combined: 6.5L / 100km
How being social media savvy can improve your well being
Next time when procastinating online remember that you can save thousands on paying for a personal trainer and a gym membership simply by watching YouTube videos and keeping up with the latest health tips and trends.
As social media apps are becoming more and more consumed by health experts and nutritionists who are using it to awareness and encourage patients to engage in physical activity.
Elizabeth Watson, a personal trainer from Stay Fit gym in Abu Dhabi suggests that “individuals can use social media as a means of keeping fit, there are a lot of great exercises you can do and train from experts at home just by watching videos on YouTube”.
Norlyn Torrena, a clinical nutritionist from Burjeel Hospital advises her clients to be more technologically active “most of my clients are so engaged with their phones that I advise them to download applications that offer health related services”.
Torrena said that “most people believe that dieting and keeping fit is boring”.
However, by using social media apps keeping fit means that people are “modern and are kept up to date with the latest heath tips and trends”.
“It can be a guide to a healthy lifestyle and exercise if used in the correct way, so I really encourage my clients to download health applications” said Mrs Torrena.
People can also connect with each other and exchange “tips and notes, it’s extremely healthy and fun”.
FIGHT CARD
Bantamweight Hamza Bougamza (MAR) v Jalal Al Daaja (JOR)
Catchweight 67kg Mohamed El Mesbahi (MAR) v Fouad Mesdari (ALG)
Lighweight Abdullah Mohammed Ali (UAE) v Abdelhak Amhidra (MAR)
Catchweight 73kg Mostafa Ibrahim Radi (PAL) v Yazid Chouchane (ALG)
Middleweight Yousri Belgaroui (TUN) v Badreddine Diani (MAR)
Catchweight 78kg Rashed Dawood (UAE) v Adnan Bushashy (ALG)
Middleweight Sallaheddine Dekhissi (MAR) v Abdel Emam (EGY)
Catchweight 65kg Rachid Hazoume (MAR) v Yanis Ghemmouri (ALG)
Lighweight Mohammed Yahya (UAE) v Azouz Anwar (EGY)
Catchweight 79kg Omar Hussein (PAL) v Souhil Tahiri (ALG)
Middleweight Tarek Suleiman (SYR) v Laid Zerhouni (ALG)
Brief scores
Barcelona 2
Pique 36', Alena 87'
Villarreal 0
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
