You may have heard talk of the Bitcoin halving, or ‘the halvening’ as it’s sometimes called. But if you’re wondering what it is and why it’s so important, keep on reading below.
The unpredictable nature of Bitcoin
Bitcoin is a hugely unpredictable asset. Just as the entire community was preparing for a bearish trend last week, the world’s number one cryptocurrency proved the naysayers wrong.
The astounding lurch in price appears to have been due to a culmination of factors led mainly by the Chinese President Xi Jinping’s endorsement of blockchain technology.
BTC is certainly influenced by macro factors, but it’s not always possible to predict whether they will affect its price.
Take Bakkt, for example. Its long-awaited and highly-celebrated launch was meant to be the catalyst for massive investment from institutions, but its first month saw Bitcoin futures contracts being traded in the single digits over 24 hours. Rather than be the starting gun for the next Bitcoin bull run, Bakkt appeared to have been the false start. Until now.
∙ Today’s volume so far: 1131 BTC
∙ Last traded price: $8,622.50
∙ Trading day progress: 54% (if this continues: 100% equals to 2095 BTC)
— Bakkt Volume Bot (@BakktBot) October 25, 2019
Bakkt’s record-breaking trading day occurred right after the announcement of its new regulated options contract. It also coincided with Bitcoin’s highest intraday gain since 2011 with a 42% price bounce.
But let’s be honest, no one knows for sure whether Bakkt’s record day had any impact on the bull run, or whether it was the CME futures expiration dates, China, or the S&P all-time high.
In such a nascent industry, it’s very hard to find events that have a predictable effect on Bitcoin’s price. However, the Bitcoin halving has historically sent the price of BTC into the