Bitcoin rushes to week high as the halving event wraps up

Bitcoin rose on Monday to a week high above $66 thousand as the halving event ended officially with traders now focused on fundamentals. 

Every four years, a halving event occurs when the mining reward falls by half, with increased interest in bitcoin usually surging around this time.

The Price 

Bitcoin rose 2.4% at Bitstamp to $66,503, a week high, with a session-low at $64,545. 

Bitcoin lost 0.1% on Sunday, the first loss in four days away from six-week lows at $59,629. 

Bitcoin lost 1.25% last week, the third weekly loss in a row on risk aversion.

Cryptocurrency Market Value 

Market value of cryptocurrencies rallied by $66 billion to $2.566 trillion as both Bitcoin and Ethereum gained ground. 

The Halving Event 

The halving event has occurred, with which the reward for mining bitcoin is halved to ensure market stability. 

It’s the fourth such event since 2012, with the daily reward available for mining operators falling to 450 bitcoin from 900. 

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How Halving Protects Bitcoin From Inflation

The change in rewards is a deliberate occurrence that’s previously specified through the code that operates the blockchain related to bitcoin. 

The inventor of bitcoin aimed to use the halving event to ensure a final limit of 21 million bitcoins, in order to protect the currency from global inflation.

Is the Halving Event a Positive Factor?

Some experts do expect the halving to have a positive impact on prices as it reduces the amount of the newly available bitcoin. 

JPMorgan’s Bitcoin Estimates Following the Halving 

JPMorgan’s analysts wrote in a memo that the main impact will occur on mining operations, as they expect the mining sector to hang on especially as struggling platforms exit the market. 

Deutsche Bank’s Estimates 

Deutsche Bank’s analysts don’t expect bitcoin prices to rise remarkably after halving as the event has already been priced in.