Happy halving
Previous Bitcoin halvings have triggered rallies about half a year later. But this time around the cryptocurrency is already on a high.
Even if you believe in cryptocurrency, you’ll have to admit that Bitcoin’s most fervent followers can be a little cult-like. Some make themselves known by inserting laser eyes in social media selfies and talk in conspiratorial tones about how global finance is against them.
And they've just celebrated a significant day on their calendar, wishing each other a “happy halving”.
On Saturday, Bitcoin’s blockchain underwent its fourth ever halving, which sees the amount of new Bitcoin tokens created each day cut by 50%. When Bitcoin first launched in 2009, 50 tokens were created every 10 minutes. After the latest halving — they happen once every four years or so — that number is now down to 3.125.
The supply crunch has Bitcoin bulls ebullient. In the past, halvings have precipitated sensational rallies by about six months. The previous event was in May of 2020, when the price of one token was about USD8,500. Within a year it was about seven times that.
