When an asset’s price goes up, more investors tend to get interested — because they would like to make money if the price continues to go up. [Bitcoin is approaching record territory](https://qz.com/bitcoin-price-record-halving-etf-1851292721) after the U.S. Securities and Exchange Commission approved spot bitcoin exchange traded-funds (ETFs), and [BlackRock’s iShares Bitcoin Trust is reaping the benefits](https://www.bloomberg.com/news/articles/2024-02-28/crypto-mania-drives-520-million-into-blackrock-bitcoin-etf-ibit-in-one-day?sref=P6Q0mxvj) of the [cryptocurrency’s new hype cycle](https://qz.com/bitcoin-price-etf-hype-cycle-1851260035) in a big way: The ETF has already brought in $1.4 billion as of Thursday. Bitcoin was trading at more than $62,000 on Friday, coming after [the coin’s best month in more than three years](https://qz.com/bitcoin-price-increase-february-best-month-since-2020-1851299185). Everyone is getting in on the party, from [miners and exchanges](https://qz.com/bitcoin-price-coinbase-marathon-digital-holdings-stock-1851298728) to trading [platforms and derivatives markets](https://qz.com/bitcoin-etfs-crypto-1-trillion-1851255727). Ironically, one of the biggest losers from all this excitement has been the Grayscale Bitcoin Trust, a popular fund that [has lost capital](https://www.bloomberg.com/news/articles/2024-02-26/grayscale-s-gbtc-bitcoin-etf-exodus-reaches-7-4-billion-in-30-days) as investors move to ETFs with lower fees: It’s out more than $400 million this week. Our free, fast, and fun briefing on the global economy, delivered every weekday morning.

[Bitcoin has been having a terrific run](https://qz.com/bitcoin-price-increase-february-best-month-since-2020-1851299185) this year. In just two months, its [price has soared 40% to more than $62,000](https://finance.yahoo.com/quote/BTC-USD?.tsrc=fin-srch), putting it in [striking distance from its all-time high](https://qz.com/bitcoin-price-record-halving-etf-1851292721) of about $69,000. [Its rally this year](https://qz.com/bitcoin-price-etf-hype-cycle-1851260035) is partly due to the U.S. Securities and Exchange Commission [approving spot bitcoin ETFs](https://qz.com/first-bitcoin-exchange-traded-funds-are-cleared-by-us-r-1851157071) in January. These exchange-traded funds tied to the price of bitcoin [allowed investors to enter the bitcoin game](https://qz.com/lots-of-people-started-selling-bitcoin-after-the-sec-ma-1851190395) without the risk of directly buying the still controversial cryptocurrency. More than $6 billion have entered the market since spot bitcoin ETFs began trading in the U.S. this year. The largest one, Grayscale Bitcoin Trust, [rose 48% since January](https://finance.yahoo.com/quote/GBTC?.tsrc=fin-srch). And that’s not all. An [upcoming technical event known as “halving”](https://qz.com/bitcoin-price-record-halving-etf-1851292721) is set to keep bitcoin surging even further in the coming months. In April, the reward miners get for minting new bitcoin will be [cut in half, from 6.25 bitcoin to 3.125.](https://qz.com/bitcoin-new-buyers-value-1851242532) This happens every four years and will continue until all 21 million bitcoins are mined. Halving was written into bitcoin’s code from the beginning [to ensure scarcity and safeguard from inflation](https://www.forbes.com/advisor/investing/cryptocurrency/bitcoin-halving/). Previous halving events coincided with huge price increases for bitcoin. Here’s everything you need to know about the upcoming halving event. 🪙 What is bitcoin? ------------------- Let’s start with some bitcoin 101. [Bitcoin is the first cryptocurrency, created in 2009](https://www.coindesk.com/learn/what-is-bitcoin/). It is a digital, decentralized currency that is not associated with any government or financial institution. To ensure its security and protect against fraud, bitcoin uses a technology called blockchain to track transactions. The blockchain works like a ledger in which every bitcoin transaction is stored in what is called a block. The authenticity of transactions stored in a block are verified by complex math problems that require computer power to be solved. Once the problems are solved the block gets added to the end of the chain. ⛏️ How are new bitcoins mined? ------------------------------ New bitcoins are added to circulation every time a block is added to the chain. Individuals or businesses, known as miners, compete with each other to solve these math problems. They are currently rewarded 6.25 bitcoins, worth about $388,000, for their efforts. ½ What is halving? ------------------ Halving refers to a technical event that occurs about every four year or so. As part of bitcoin’s code, [after every 210,000 blocks are added to the chain, the mining reward is cut in half](https://qz.com/681996/everything-you-need-to-know-about-the-bitcoin-halving-event). This was done to slow down the pace at which supply of bitcoin can be added to circulation. The number of bitcoins that will ever be created is capped at 21 million, as a away to mimic finite resources like gold. The next halving event is expected to take place this April, when the mining reward is set to be cut to 3.125 bitcoins. 📈 How does halving impact bitcoin’s price? ------------------------------------------- Each of the three halving events so far [resulted in price increases in the following months](https://www.marketwatch.com/story/when-is-bitcoin-halving-heres-what-history-saysabout-how-it-may-impact-the-cryptocurrencys-price-7e7c4ca5). The last halving took place in May 2020, when bitcoin was priced at around $8,750. Six months after the halving, bitcoin’s price grew 79%, and a year later it was up a whopping 547%.

[Bitcoin’s hot streak](https://qz.com/bitcoin-price-increase-february-best-month-since-2020-1851299185) continued Monday when it surged to almost $67,000 — its highest value in more than two years. The cryptocurrency set a record in November 2021, at just [one cent below $69,000](https://finance.yahoo.com/video/bitcoin-bounces-beyond-65-000-110612445.html). Bitcoin has [gained more than 40% in market value this year](https://www.google.com/finance/quote/BTC-USD?sa=X&ved=2ahUKEwiY1LHM0dqEAxXZtokEHVKmAgkQ-fUHegQIFRAY&window=YTD) as it closes in on the $69,000 record. That rise is partly due to the [approval of spot bitcoin ETFs](https://qz.com/first-bitcoin-exchange-traded-funds-are-cleared-by-us-r-1851157071) by the U.S. Securities and Exchange Commission in January, which allows investors to [trade the cryptocurrency with less risk](https://qz.com/lots-of-people-started-selling-bitcoin-after-the-sec-ma-1851190395). The approval drew lots of new investors into the cryptocurrency market. Since trading started for spot bitcoin ETFs, [more than $6 billion has entered the market](https://qz.com/bitcoin-halving-event-explained-price-1851300020), with [Grayscale Bitcoin Trust surging 62%](https://finance.yahoo.com/quote/GBTC) since January. Meanwhile, cryptocurrency exchange platform Coinbase and cryptocurrency miner Marathon Digital Holdings have outperformed bitcoin this year, [gaining 59% and 45%, respectively](https://qz.com/bitcoin-price-coinbase-marathon-digital-holdings-stock-1851298728). Investors are anticipating [Bitcoin’s “halving” event next month](https://qz.com/bitcoin-halving-event-explained-price-1851300020), which is expected to keep the cryptocurrency surging over the next few months. The event, which happens every four years, is when bitcoin miners start to [gain only half the reward for minting new bitcoin](https://qz.com/bitcoin-new-buyers-value-1851242532). That reward will be cut from 6.25 bitcoin to 3.125. The technical event was [written into bitcoin’s code to safeguard the cryptocurrency from inflation](https://qz.com/bitcoin-halving-event-explained-price-1851300020) and will continue until it reaches the cap of 21 million, which was created to make bitcoin a finite resource. After every 210,000 blocks are added to the chain, the reward is cut in half to slow down the pace of adding bitcoin to the supply in circulation. Three previous halving events have seen the price of bitcoin rise in the months following. The latest event in May 2020 saw bitcoin’s price, which was around $8,750, increase 79% six months later, and 547% a year later.

Bitcoin hit a record high of more than $69,000 on Tuesday, capping a remarkable comeback for the volatile cryptocurrency after its value plunged in 2022 amid a [market meltdown](https://www.nytimes.com/2022/05/12/technology/cryptocurrencies-crash-bitcoin.html). Bitcoin’s price has risen more than 300 percent since November 2022, a resurgence that few predicted when the price dropped below $20,000 that year. Its previous record was just under $68,790 in November 2021, as crypto markets boomed and amateur investors poured savings into experimental digital coins. The cryptocurrency was “pronounced dead for the 150th time,” said [Cory Klippsten](https://www.nytimes.com/2022/08/02/technology/crypto-bitcoin-maximalists.html), the chief executive of Swan, a financial services firm focused on Bitcoin. “And Bitcoin continues to do what Bitcoin does, which is win people over as they take the time to actually learn about it.” Bitcoin’s recent surge has been driven by investor enthusiasm for a new financial product tied to the digital coin. In January, U.S. regulators [authorized](https://www.nytimes.com/2024/01/10/technology/sec-bitcoin-approval-exchange-traded-funds.html) a group of crypto companies and traditional finance firms to offer exchange-traded funds, or E.T.F.s, which track Bitcoin’s price. The funds provide a simple way for people to invest in the crypto markets without directly owning the virtual currency. As of last week, investors had poured more than $7 billion into the investment products, propelling Bitcoin’s rapid rise, according to Bloomberg Intelligence. The price of Ether, the second-most-valuable digital currency after Bitcoin, has also risen more than 50 percent this year, reaching about $3,800. Its increase has been driven partly by enthusiasm over the prospect that regulators may also approve an E.T.F. tied to Ether. Thank you for your patience while we verify access. If you are in Reader mode please exit and [log into](https://myaccount.nytimes.com/auth/login?response_type=cookie&client_id=vi&redirect_uri=https%3A%2F%2Fwww.nytimes.com%2F2024%2F03%2F05%2Ftechnology%2Fbitcoin-price-record-high.html&asset=opttrunc) your Times account, or [subscribe](https://www.nytimes.com/subscription?campaignId=89WYR&redirect_uri=https%3A%2F%2Fwww.nytimes.com%2F2024%2F03%2F05%2Ftechnology%2Fbitcoin-price-record-high.html) for all of The Times. Thank you for your patience while we verify access. Already a subscriber? [Log in](https://myaccount.nytimes.com/auth/login?response_type=cookie&client_id=vi&redirect_uri=https%3A%2F%2Fwww.nytimes.com%2F2024%2F03%2F05%2Ftechnology%2Fbitcoin-price-record-high.html&asset=opttrunc). Want all of The Times? [Subscribe](https://www.nytimes.com/subscription?campaignId=89WYR&redirect_uri=https%3A%2F%2Fwww.nytimes.com%2F2024%2F03%2F05%2Ftechnology%2Fbitcoin-price-record-high.html).

[Bitcoin’s hot streak](https://qz.com/bitcoin-price-increase-february-best-month-since-2020-1851299185) continued Tuesday morning when it briefly surged to $69,191.95 and surpassed its previous record-high from 2021. The price later retreated to $68,115 by mid-morning. The digital asset briefly hit $68,000 Monday — its highest value in more than two years. The cryptocurrency’s price had fallen back to $66,701 on Tuesday morning before it surged again. Bitcoin set a record in November 2021, at just [one cent below $69,000](https://finance.yahoo.com/video/bitcoin-bounces-beyond-65-000-110612445.html). Bitcoin has [gained more than 40% in market value this year](https://www.google.com/finance/quote/BTC-USD?sa=X&ved=2ahUKEwiY1LHM0dqEAxXZtokEHVKmAgkQ-fUHegQIFRAY&window=YTD) as it closed in on the $69,000 record. That rise is partly due to the [approval of spot bitcoin ETFs](https://qz.com/first-bitcoin-exchange-traded-funds-are-cleared-by-us-r-1851157071) by the U.S. Securities and Exchange Commission in January, which allows investors to [trade the cryptocurrency with less risk](https://qz.com/lots-of-people-started-selling-bitcoin-after-the-sec-ma-1851190395). The approval drew lots of new investors into the cryptocurrency market. Since trading started for spot bitcoin ETFs, [more than $6 billion has entered the market](https://qz.com/bitcoin-halving-event-explained-price-1851300020), with [Grayscale Bitcoin Trust surging 62%](https://finance.yahoo.com/quote/GBTC) since January. Meanwhile, cryptocurrency exchange platform Coinbase and cryptocurrency miner Marathon Digital Holdings have outperformed bitcoin this year, [gaining 59% and 45%, respectively](https://qz.com/bitcoin-price-coinbase-marathon-digital-holdings-stock-1851298728). **Read more**: [Bitcoin is about to see a big ‘halving’ event. Here’s what that means and why it matters](https://qz.com/bitcoin-halving-event-explained-price-1851300020) Investors are anticipating [Bitcoin’s “halving” event next month](https://qz.com/bitcoin-halving-event-explained-price-1851300020), which is expected to keep the cryptocurrency surging over the next few months. The event, which happens every four years, is when bitcoin miners start to [gain only half the reward for minting new bitcoin](https://qz.com/bitcoin-new-buyers-value-1851242532). That reward will be cut from 6.25 bitcoin to 3.125. The technical event was [written into bitcoin’s code to safeguard the cryptocurrency from inflation](https://qz.com/bitcoin-halving-event-explained-price-1851300020) and will continue until it reaches the cap of 21 million, which was created to make bitcoin a finite resource. After every 210,000 blocks are added to the chain, the reward is cut in half to slow down the pace of adding bitcoin to the supply in circulation. Three previous halving events have seen the price of bitcoin rise in the months following. The latest event in May 2020 saw bitcoin’s price, which was around $8,750, increase 79% six months later, and 547% a year later.

The crypto community took a victory lap Tuesday with the news that [the price of Bitcoin hit an all-time high of $69,210](https://qz.com/bitcoin-price-record-halving-event-etfs-68000-1851308007). Those celebrations cooled when the value dropped a full 8% just a few hours later, but it marked [a stunning recovery from the crypto crash of 2022](https://qz.com/bitcoin-price-etf-hype-cycle-1851260035). For the fans, Bitcoin’s rally was evidence that cryptocurrency is a good investment after all. There’s just one problem: Adjusted for inflation, Bitcoin is actually worth less than it was three years ago. Let’s do the math. The last time Bitcoin broke records was on Nov. 10, 2021, when the price of one Bitcoin hit $68,982.20. But perhaps you’ve heard about skyrocketing inflation over the past few years. When you adjust for inflation using data from the [Bureau of Labor Statistics](https://data.bls.gov/cgi-bin/cpicalc.pl?cost1=68%2C982.20&year1=202111&year2=202401), that’s about $76,544.11 in today’s dollars. In other words, when Bitcoin hit its most recent peak, it was worth $7,334 less than it was in 2021 if you consider the actual buying power of the US dollar. That’s a difference of about 9.6%. One of the arguments for Bitcoin is it works as a hedge against inflation. The idea is that over the long term, your money will be worth more if you put it in Bitcoin than if you left it in a bank or put it in more traditional investments. To be sure, Bitcoin’s gains are spectacular when you look at the price of the cryptocurrency over its entire 15-year history. However, many experts say the dramatic rises and falls [make Bitcoin too volatile](https://gizmodo.com/are-we-really-doing-the-crypto-hype-cycle-again-1851256814) to serve as any kind of meaningfully safe investment. In fact, you would have done better over the past few years if you put your money in a traditional, boring portfolio. For example, we can compare Bitcoin’s price to a fund that just tracks the performance of the overall stock market, like the SPDR S&P 500 ETF. When you adjust for inflation, that fund was worth a little over 1.5% less on Tuesday than it was three years ago. That means if you bought $10,000 of Bitcoin at its peak, your money would be worth about $9,050 today. If you bought $10,000 of the SPDR S&P 500 ETF at the same time, it would be worth $9,850. Inflation hits old-school investments the same way it hits Bitcoin, but this time around, you would have been better off investing in the regular old stock market. Parking your money in Bitcoin would have meant you effectively lost $800. **Read more**: [Bitcoin is about to see a big ‘halving’ event. Here’s what that means and why it matters](https://qz.com/bitcoin-halving-event-explained-price-1851300020) Of course, it’s a mistake to buy into an investment when it’s hitting all-time highs. The maxim is buy low, sell high. You could have done that with Bitcoin if you could predict the future, and you would have cleaned up. This year alone, the value of Bitcoin jumped 45% but there’s no guarantee that trend will continue. This year, the courts approved cryptocurrency ETFs, which basically allow investors to mix in Bitcoin and other digital currencies with more traditional assets. But if that decision had gone the other way, Bitcoin’s value would have almost certainly tanked instead. In general, you have many more tools at your disposal to evaluate stock investments than to predict the swings of the Bitcoin market. Either way, the sad truth is many people make the mistake of putting their money in cryptocurrency right when it’s breaking records, the effect of less informed investors giving in to the fear of missing out. That’s a great way to lose money if you get scared and cut your losses when the price falls. The bottom line is investing is always a coin toss. But if there’s anything that this week’s Bitcoin “record” proves, it’s that crypto is just as much of a gamble as it always has been. [_A version of this article originally appeared on Gizmodo_](https://gizmodo.com/actually-bitcoin-didn-t-hit-an-all-time-high-if-you-ad-1851313687).

Bitcoin has reached a new record price of more than $70,000, as the UK financial regulator said it would allow the trading of cryptocurrency-backed securities. The cryptocurrency was trading at $71,588 on Monday morning, having last week overtaken its previous [November 2021 high of nearly $69,000](https://www.theguardian.com/technology/2024/mar/05/bitcoin-rises-above-69000-in-new-record-high). The latest price move came as the UK financial regulator said on Monday it would “not object” to investment exchanges creating a UK-listed market segment for cryptoasset-backed exchange traded notes \[cETNs\], a financial product that can be traded like a stock. However, the Financial Conduct Authority said it would not permit the sale of the cETNs to retail investors, or members of the public. “The FCA continues to remind people that cryptoassets are high risk and largely unregulated. Those who invest should be prepared to lose all their money,” it said in a statement. Bitcoin has been [helped this year](https://www.theguardian.com/technology/2024/mar/05/bitcoin-cryptocurrency-new-record-value-explainer) by the US financial regulator approving [exchange-traded funds \[ETFs\]](https://www.theguardian.com/business/nils-pratley-on-finance/2024/jan/11/bitcoin-tracking-etfs-sec-cryptocurrency) – a basket of assets that can be bought and sold like shares on an exchange – that track the price of the cryptocurrency. The chair of the Securities and Exchange Commission, Gary Gensler, also expressed scepticism about bitcoin despite the approval, [referring to it in January](https://www.sec.gov/news/statement/gensler-statement-spot-bitcoin-011023) as a “speculative, volatile asset” used for illicit activities including ransomware and terrorist financing. An upcoming “halving” of bitcoin, in which the amount of new bitcoin being generated is reduced, is also expected to support the currency by causing a reduction in supply – and therefore bolstering the price. Neil Wilson, the chief analyst at the brokerage Finalto, said the FCA move was a “positive” sign for the cryptocurrency market. He added that “parabolic” market moves – referring to sharp price increases – tended to end in a big pullback but “we cannot be sure with bitcoin any more”. “There is a question of the amount of spare cash sitting around that can be allocated to it,” he added.

 Bitcoin once again [hit a new record](https://qz.com/bitcoin-price-record-halving-event-etfs-68000-1851308007), surging to more than $72,000 Monday morning after the U.K.’s finance watchdog said it would [allow investment exchanges to list crypto-linked exchange-traded notes](https://www.fca.org.uk/news/statements/fca-updates-position-cryptoasset-exchange-traded-notes-professional-investors) (or ETNs). The U.K. Financial Conduct Authority (FCA) said the [products would only be available for professional investors](https://www.fca.org.uk/news/statements/fca-updates-position-cryptoasset-exchange-traded-notes-professional-investors), including investment firms and credit institutions that are allowed or regulated to operate in the financial market. It added that exchanges must have sufficient controls in place, “so trading is orderly and proper protection is afforded to professional investors.” The FCA also said a ban on retail investors from buying crypto-linked ETNs or derivatives remains in place because they are too risky. After the U.S. Securities and Exchange Commission approved spot bitcoin ETFs in January, allowing investors to trade crypto with less risk, new investors have entered the crypto market — and the [price of bitcoin has been on the rise](https://qz.com/bitcoin-price-record-halving-event-etfs-68000-1851308007). Last week, bitcoin [briefly surpassed its previous record high from 2021](https://qz.com/bitcoin-price-record-halving-event-etfs-68000-1851308007) when it surged to $69,191.95. But [ETFs are different from ETNs](https://www.investopedia.com/financial-edge/0213/etf-or-etn-whats-the-difference.aspx), as ETFs are a fund-holding asset, while an ETN is an unsecured debt note issued by a bank. Bitcoin investors are also anticipating the [currency’s “halving” event](https://qz.com/bitcoin-halving-event-explained-price-1851300020) next month, which is expected to keep Bitcoin’s price surging over the next few months. The event happens every four years, and sees Bitcoin miners earning only half the reward for minting new Bitcoin. That means the reward will be cut from 6.25 Bitcoin to 3.125. The event, which was written into the cryptocurrency’s code to protect it from inflation, will continue until Bitcoin reaches a cap of 21 million. After every 210,000 blocks are added to the chain, the reward is cut in half to slow down the pace of adding new Bitcoin to circulation. Our free, fast, and fun briefing on the global economy, delivered every weekday morning.

Mar 12, 2024 2:13 PM The price of bitcoin has climbed to a new all-time high. But assigning the cryptocurrency a value is anything but trivial.  PHOTO-ILLUSTRATION: ANJALI NAIR; GETTY IMAGES Bitcoin fever has returned. On March 5, the price of the cryptocurrency swelled to a record high—and has continued its upward march. In 2024 it has provided investors with a greater return than almost any other asset. But as enthusiasm for [bitcoin](https://www.wired.com/tag/bitcoin) spreads anew, so do [myths and confusion](https://www.wired.com/story/bitcoin-etf-crypto-investments/) around the forces moving the price. In the last month alone, the price of bitcoin has [risen by almost 70 percent](https://www.coindesk.com/price/bitcoin/). The surge has been celebrated in crypto circles as an inevitable return to form—the fun part of a predictable boom-and-bust cycle. The phrases “[number go up](https://www.wired.com/story/sam-bankman-fried-ftx-trial-going-infinite-number-go-up/)” and “it’s just math” have long been adopted as tongue-in-cheek mantras by crypto believers and ironic insults by its skeptics. Yet they capture a belief among hardliners that the economic architecture of the Bitcoin system—whereby a fixed supply of 21 million coins and predetermined schedule of release is hardcoded into the software—will inevitably propel the price upwards over time. They see scarcity as an antidote to runaway inflation of traditional currencies, which deteriorate in value, and unsustainable levels of debt taken on by governments across the globe. Bitcoin is currently trading at over $72,000 per coin; proponents like Samson Mow, CEO of bitcoin-centric technology firm JAN3, have said they expect that value to reach as high as $1 million in the immediate future. “Money is fundamentally broken,” he told WIRED in November. The jubilation and told-you-sos, however, drown out difficult questions around what it means to place a price on cryptocurrency. The proposition is deceptively tricky, says James Angel, an economist at Georgetown University specializing in financial markets, because bitcoin defies conventional valuation methods. There is no company behind Bitcoin whose performance can be analyzed. It does not generate revenue. It is not widely used to make payments or for any secondary purpose. It is not issued by any government. It resists easy comparisons. But one thing is certain, says Angel: “A limited supply does not equate to infinite value.” Bitcoin [emerged in 2008](https://www.ussc.gov/sites/default/files/pdf/training/annual-national-training-seminar/2018/Emerging_Tech_Bitcoin_Crypto.pdf), in the wake of a global financial crisis. It was born of a frustration with the stewards of the world economy and the behavior of large banks and financial institutions, whose reckless financial engineering set the stage for the meltdown. The new form of “electronic cash” was designed in such a way as to take control over monetary policy—the way money enters and is removed from circulation—away from central banks, imposing hard limits on supply and the schedule by which new coins were released. “The root problem with conventional currency is all the trust that's required to make it work,” wrote Satoshi Nakamoto, the elusive [creator of Bitcoin](https://www.wired.com/story/craig-wright-satoshi-nakamoto-trial/), in a [2009 forum post](https://p2pfoundation.ning.com/forum/topics/bitcoin-open-source). “The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.” If bitcoin could gain a foothold as a globally recognized money, Satoshi and their early collaborators hoped, nobody’s savings could be devalued by the policy of any bank or government. The emergence of bitcoin has given way to a body of academic literature dedicated to the slippery problem of assigning a value to this new type of asset. The issue, says Silvia Dal Bianco, an economist at University College London, is that bitcoin defies easy definition. An analysis of the value of bitcoin, she says, to some extent “depends on what we think bitcoin is.” To date, bitcoin has not been adopted widely as a way to purchase goods and services. Therefore, bitcoiners who believe its price will rise tend to emphasize its potential as a [digital equivalent of gold](https://www.youtube.com/watch?v=PGTQIl7GtMA)—a commodity whose limited supply allows owners to hedge against inflation and general economic calamity. That argument may have some merit on its own. But social media hype [often](https://twitter.com/APompliano/status/1767167777998053742) flattens the nuances of bitcoin’s deflationary properties to something approximating: “The limited supply of bitcoin will drive up the price.” That’s where the “number go up” philosophy [stems](https://stephanlivera.com/episode/147/) from. But the fixed supply of bitcoin, says Angel, was priced in long ago. “In a well-functioning market, anything everybody already knows should already be incorporated into the price today.” A prominent misconception about bitcoin’s supply dynamics is that a process called the halving—whereby the amount of new bitcoin released into circulation is cut in half roughly every four years—is guaranteed to push the price upwards. The next halving is due to take place next month, prompting [speculation](https://www.cnbc.com/2024/02/29/what-bitcoin-being-halved-means-for-its-price.html) about yet another rise in price. But the fact that each previous halving has been followed by an upswing has more to do with self-fulfilling speculation, says Angel, than any economic mechanism of the Bitcoin system. The closest thing bitcoin has to fundamentals—characteristics that can be used to reach a solid valuation—is the cost of producing new coins, says Dal Bianco. In the same way the price of gold is linked to a degree to the cost of clawing ore from the ground, the price of bitcoin should at least loosely mirror the hardware and energy costs associated with mining new bitcoin. Yet the design of the system means bitcoin resists this method for valuation too. To ensure new supply is released at a steady rate, producing bitcoin becomes more computationally intensive—and therefore more expensive—as the level of competition among miners increases, and vice versa. If the price of bitcoin rises, more miners are drawn to participate, increasing the cost for all. Therefore, as Satoshi [wrote](https://satoshi.nakamotoinstitute.org/posts/bitcointalk/65) in a 2010 forum post, the price of bitcoin “dictates the cost of production more than the other way around.” Detached from measurable fundamentals and real-world utility, fluctuations in the price of bitcoin reflect not much more than a collective belief that the price will either rise or fall. “It’s about what people think about bitcoin—it’s about animal spirits,” says Dal Bianco. That mentality isn’t limited to cryptocurrency; in 2021, investors [whipped up a frenzy around so-called meme stocks](https://www.wired.com/story/defi-gamestop-memes-doge-musk/), sending the prices skyward. Buyers were no longer betting on the prospects of the underlying businesses, only on further increases in price. The latest surge in the price of bitcoin is increasing the clamor around it, says Dal Bianco, drawing in yet more speculators and creating a “self-reinforcing cycle.” Likewise, when collective confidence in the prospect of further price growth falters, she says, the resultant downturn can be equally sudden. Under these conditions, demand can vanish as rapidly as it forms. On March 3, Michael Green, chief strategist at asset management firm Simplify, [entered into](https://twitter.com/profplum99/status/1764380882914128193) a wager with Peter McCormack, host of the podcast _What Bitcoin Did_. They were betting on the price of bitcoin. Green wagered $20,000 that bitcoin would not reach a price of $100,000 per coin by the end of the year. McCormack wagered $100,000 that it would. The bet, Green says, was in part motivated by a desire to highlight areas of weakness in the economic theory presented as dogma by bitcoin evangelists. He takes issue with the way bitcoin is being sold to the investing public as “a store of value designed ultimately to be the currency of the future,” he says. “I think that is a bunch of economic nonsense.” Because the supply of bitcoin will shrink steadily over time as people lose access to irrecoverable wallets, Green argues, it cannot support a system of credit, because the cost of borrowing will eventually rise to a point that almost no one can afford. In January, US regulators approved the first batch of bitcoin exchange-traded funds, which give people a way to invest in the cryptocurrency through a brokerage, as they would a regular stock. The arrival of bitcoin ETFs is said to have [catalyzed the latest surge in price](https://www.wired.com/story/bitcoin-etf-crypto-investments/), by unlocking a wave of pent-up demand among investors—both institutions and regular people—previously unable or unwilling to deal with a crypto exchange or [risk storing crypto manually themselves](https://www.wired.com/story/ftx-crypto-investors-hardware-wallets/). In approving the new bitcoin funds, says Green, regulators have incentivized financial institutions for whom the ETFs represent a new source of revenue to “spend tons of money on marketing to drive demand,” and in turn disincentivized any emphasis on deficiencies in the logic of bitcoinomics. The belief in the future potential of bitcoin has become religious, says Green. That missionary zeal is more likely to influence the price, says Green, than any economic mechanism built into the system. Even if McCormack were to lose the wager, he says, it could be chalked up as a fruitful marketing expense. McCormack told WIRED the wager with Green was not a marketing stunt. “I did the bet to prove him wrong,” he says. The influence of evangelism on the price of bitcoin limits the opportunity for good-faith debate about the prospects of the Bitcoin system, says Angel.“Once you drink the Kool-Aid, you have a powerful financial incentive to preach to the world that bitcoin is the most wonderful thing,” he says. “If there were a Nobel prize in marketing, it should be given to Satoshi Nakamoto.” Bitcoin’s biggest boosters embrace that dynamic as well. “Bitcoin price appreciation is an advertisement,” says Mow. Investors buy in on the prospect of riches—and then fall down the “rabbit hole” themselves, creating a new generation of believers to spread the Bitcoin gospel.

Bitcoin’s hot streak ahead of its “halving event” — which is expected to drive [its price to new highs](https://qz.com/bitcoin-halving-event-explained-price-1851300020) — continued Wednesday, [reportedly hitting a new all-time record of $73,679](https://cointelegraph.com/news/bitcoin-price-new-73-6-k-all-time-high-etfs-eat). The price was reported by crypto media outlet Cointelegraph using data from Cointelegraph Markets Pro and TradingView. Earlier this week, [bitcoin hit its highest price](https://qz.com/bitcoin-uk-etn-new-high-1851324449) to date — over $72,000 Monday morning — after the U.K.’s finance watchdog said it would [allow investment exchanges](https://www.fca.org.uk/news/statements/fca-updates-position-cryptoasset-exchange-traded-notes-professional-investors) to list crypto-linked exchange-traded notes (or ETNs). The U.K. Financial Conduct Authority (FCA) said the products would only be available for professional investors, including investment firms and credit institutions that were already allowed to operate in the financial market. Retail investors are still banned from buying crypto-linked ETNs or derivatives due to the high risk. Bitcoin broke its all-time record [in more than two years](https://qz.com/bitcoin-price-record-halving-event-etfs-68000-1851308007) earlier this month, briefly surging to $69,191.95 (although when adjusted for inflation, b[itcoin was actually worth $7,334 less](https://qz.com/bitcoin-price-record-inflation-etfs-1851314220) than it was at its record in 2021). The January approval of spot bitcoin ETFs [by the U.S. Securities and Exchange Commission](https://qz.com/first-bitcoin-exchange-traded-funds-are-cleared-by-us-r-1851157071), which opened the cryptocurrency market to new investors who wanted to trade the digital coins with less risk, is partly behind its surging prices. [Over $6 billion](https://qz.com/bitcoin-halving-event-explained-price-1851300020) has entered the cryptocurrency market since trading started for spot Bitcoin ETFs. Investors are looking forward to next month, when bitcoin’s “halving event” is expected to keep its hot streak going for the next few months. The event happens every four years; in a halving, bitcoin miners gain only [half the reward for minting new bitcoin](https://qz.com/bitcoin-halving-event-explained-price-1851300020), meaning they will get 3.125 bitcoin instead of 6.25. The event, which is written into bitcoin’s code to safeguard the coin from inflation, will keep going until it reaches a cap of 21 million bitcoin in circulation. Three previous halving events have seen the price of bitcoin rise in the following months. The latest event in May 2020 saw the digital coin’s price, which was around $8,750, increase 79% six months later, and 547% a year later.

Bitcoin’s rally took a break Friday morning as the flagship cryptocurrency’s price dropped 6% overnight to $68,000. It’s unclear what caused the price drop, [but analysts consider](https://www.cnbc.com/2024/03/15/bitcoin-shows-its-volatility-once-again-tumbling-back-to-67000-in-overnight-decline.html) it a healthy correction. Bitcoin has been on the rise this year, breaking out of the crypto winter and reaching new all-time highs. This year alone the price has increased by more than 50%, reaching its highest point at $73,000 earlier this week. The jump in the price was primarily due to the SEC’s approval for spot Bitcoin ETFs, followed by the U.K.’s permission to list Bitcoin-linked securities on the stock market. The positive momentum spread across the market, skyrocketing the prices of other cryptocurrencies. Price could go to $58,000 ------------------------- However, the largest cryptocurrency may be ready for a cool-off phase, [experts say](https://www.cnbc.com/2024/03/15/bitcoin-shows-its-volatility-once-again-tumbling-back-to-67000-in-overnight-decline.html). Digital asset analytics firm Swissblock [said](https://coinmarketcap.com/community/articles/65f29f203401806a27c2bfad/) in a Telegram channel that Bitcoin’s price almost doubled to $38,000 in late January without any significant pullbacks, and so a cooling period may be on the horizon. In a note, Swissblock mentioned that the price of Bitcoin could [go to $58,000-$59,000](https://coinmarketcap.com/community/articles/65f29f203401806a27c2bfad/) in the next move, representing a 20% decline. MicroStrategy is buying more Bitcoin ------------------------------------ Amid the volatility of Bitcoin, a software firm and [Bitcoin maximalist](https://qz.com/bitcoin-microstrategy-stock-1851328227) MicroStrategy is planning to buy more Bitcoins. On Wednesday, it [filed to raise $500 million in a convertible debt offering](https://www.microstrategy.com/press/microstrategy-announces-proposed-private-offering-of-500-million-of-convertible-senior-notes_03-13-2024), so that it can buy more Bitcoin. At the time of writing, [Bitcoin was hovering at $68,000](https://coinmarketcap.com/), a 5.7% drop in the past 24 hours. More Bitcoin news ----------------- [Could Bitcoin soar all the way to $100,000? A key crypto booster says yes](https://qz.com/bitcoin-next-target-100-000-adam-back-says-its-overdue-1851336614) [Who really created Bitcoin? What to know about the new Craig Wright intrigue](https://qz.com/craig-wright-satoshi-nakamoto-bitcoin-1851335763)

Talk about sweet returns. As Easter approaches, the cost of chocolate candy ingredient [cocoa has spent the year skyrocketing](https://qz.com/cocoa-prices-easter-chocolate-candy-1851366496). Spot prices are up more than 127% since the end of 2023. That’s a better winter than [Bitcoin](https://qz.com/bitcoin-history-creation-origin-price-1851347621). Despite [all the hype as it approaches new records](https://qz.com/bitcoin-halving-event-explained-price-1851300020?rev=1709325863664), the digital currency is only up a paltry 57% this year. Though many chocolate producers hedge their costs months in advance so they’re not exposed to the volatility of spot markets — [Hershey told investors its cocoa supplies were locked up](https://qz.com/hershey-earnings-high-cocoa-price-skinnypop-demand-1851239530) a year out —the jump in cocoa prices is still a bright spot on their radars. “From a cocoa bean price point of view, it is an unprecedented price hike,” Martin Hug, CFO of Lindt and Ghirardelli parent company Lindt & Sprüngli, [said during an earnings call](https://qz.com/cocoa-prices-easter-chocolate-candy-1851366496) earlier this month. The commodity is three times as expensive as it was the same time a year ago in spot markets. Much of [Bitcoin’s appreciation during its renewed hype cycle](https://qz.com/bitcoin-price-etf-hype-cycle-1851260035) has come from a flood of new investor capital in the form of [spot Bitcoin ETFs](https://qz.com/best-spot-bitcoin-etfs-1851340637), which the Securities and Exchange Commission [approved earlier this year](https://qz.com/first-bitcoin-exchange-traded-funds-are-cleared-by-us-r-1851157071). On top of that, investors are staring down [a so-called Bitcoin halving event](https://qz.com/bitcoin-halving-event-explained-price-1851300020?rev=1709325863664), when Bitcoin miners will see half as much of their rewards. Previous halving events have sent Bitcoin prices higher. Cocoa, on the other hand, is rising in value because its supply has been severely constrained by climate change. Periods of intense rain followed by drought have reduced crop yields in addition to swollen root disease that is also affecting the health of cocoa trees. Making matters worse (or better, depending on which side of the trade you’re on), Bloomberg reports that the cocoa rally has been so extreme that [traders are being forced to sell short positions](https://www.bloomberg.com/news/articles/2024-03-26/cocoa-soars-past-10-000-pummeling-chocolate-and-candy-makers?sref=P6Q0mxvj) they held as part of normal hedging.

The Dow Jones Industrial Average and the other major U.S. stock indexes started the week in neutral on Monday, with investors keeping a close eye on inflation data later in the week. The latest Consumer Price Index report will be released Wednesday and is expected to be a major factor in whether or not the Federal Reserve cuts interest rates later this year. The Dow was up 53 points, or 0.1%, to 38,957 shortly before midday. The S&P 500 was up 0.2% and the tech-heavy Nasdaq rose 0.3%. **Tech stocks on high** ----------------------- The week started on a positive note for tech stocks, as they were among the top performers Monday morning. Amazon stock hit a new 52-week high with a 1% jump, trading around $186 per share. Alphabet Class A and Alphabet Class C jumped 1.6% each near midday. Among AI stocks, Microchip Technology and Micron Technologies edged up 1.7% and 1.5%, respectively. Microsoft [announced the opening of a new AI hub in London](https://qz.com/microsoft-london-ai-hub-develop-products-research-1851394703), but its stock remained unchanged. Crypto stocks soar on Bitcoin halving ------------------------------------- The week was off to [a good start for cryptocurrency-related stocks like Coinbase, MicroStrategy, and Tesla](https://qz.com/bitcoin-price-halving-tesla-coinbase-microstrategy-stoc-1851394763), as Bitcoin’s price reached $72,000 with [the highly-anticipated Bitcoin “halving” event on the horizon](https://qz.com/bitcoin-halving-event-explained-price-1851300020). The flagship cryptocurrency, which has [experienced a rollercoaster ride of price corrections](https://qz.com/bitcoin-crypto-falling-price-below-65000-1851381114) and continuous [outflows of funds](https://qz.com/bitcoin-etfs-are-soaring-but-gbtc-is-struggling-1851379317) from [spot Bitcoin ETFs](https://qz.com/best-spot-bitcoin-etfs-1851340637), seems ready to take a leap. It is just [2.7% away from its record high of $73,737](https://www.coingecko.com/en/coins/bitcoin), which it hit in March. Meanwhile, the crypto community is excited about [Bitcoin halving, which is right around the corner](https://qz.com/bitcoin-halving-event-explained-price-1851300020). The event will divide the reward for Bitcoin miners in half, a method for controlling Bitcoin production and inflation. Coinbase stock was up 6.3% near midday. MicroStrategy stock was up 6.1%. **Tesla is riding on robotaxis** -------------------------------- [It’s been a rough start to 2024 for Tesla](https://qz.com/tesla-stock-q1-sales-elon-musk-deliveries-production-1851384492), as [Elon Musk’s EV maker struggles with sales](https://qz.com/elon-musk-tesla-electric-vehicle-deliveries-sales-q1-1851380928) and more. Tesla stock is still down more than 31% so far this year, but it was recovering some ground on Monday. Shares in Tesla, which holds [10,500 bitcoins worth $336 million,](https://www.coingecko.com/en/public-companies-bitcoin) were up 5.1%. Musk late last week teased an [unveiling of a Tesla robotaxi](https://twitter.com/elonmusk/status/1776351450542768368) in August.

The week is off to a good start for cryptocurrency-related stocks like Coinbase, MicroStrategy, and Tesla, as Bitcoin’s price reached $72,000 with [the highly-anticipated Bitcoin “halving” event on the horizon](https://qz.com/bitcoin-halving-event-explained-price-1851300020). The flagship cryptocurrency, which has [experienced a rollercoaster ride of price corrections](https://qz.com/bitcoin-crypto-falling-price-below-65000-1851381114) and continuous [outflows of funds](https://qz.com/bitcoin-etfs-are-soaring-but-gbtc-is-struggling-1851379317) from [spot Bitcoin ETFs](https://qz.com/best-spot-bitcoin-etfs-1851340637), seems ready to take a leap. It is just [2.7% away from its record high of $73,737](https://www.coingecko.com/en/coins/bitcoin), which it hit in March. Meanwhile, the crypto community is excited about [Bitcoin halving, which is right around the corner](https://qz.com/bitcoin-halving-event-explained-price-1851300020). The event will divide the reward for Bitcoin miners in half, a method for controlling Bitcoin production and inflation. Coinbase wins a legal battle ---------------------------- The publicly traded crypto exchange Coinbase recently won a legal case regarding secondary crypto sales. The U.S. Court of Appeals for the Second Circuit ruled in favor of Coinbase, [saying that secondary sales of cryptocurrencies on Coinbase do not violate](https://assets.ctfassets.net/c5bd0wqjc7v0/IM8PsiQNNYor7VRrv0V6s/f009950970dfdac472f24314b13fdc43/23-184_Documents.pdf) the Securities Exchange Act. It’s is a major win not only for Coinbase but for the entire crypto industry, [which has long faced regulatory issues.](https://qz.com/sec-sue-coinbase-for-unregistered-securities-1851369617) Coinbase stock was up 5.3% in Monday morning trading to $253 per share. MicroStrategy soaring on Bitcoin halving ---------------------------------------- Bitcoin advocate MicroStrategy was experiencing high demand from investors on Monday morning after [Benchmark analyst Mark Palmer upgraded his price target](https://www.coindesk.com/markets/2024/04/08/microstrategy-should-continue-to-rally-as-bitcoin-halving-nears-benchmark/) from $990 per share to $1,875. The software company, which holds [174,530 Bitcoin worth $4.6 billion](https://www.coingecko.com/en/public-companies-bitcoin), is ready to capitalize after the Bitcoin halving. MicroStrategy stock was up 9.5% in Monday morning trading to $1,575 per share. Tesla is riding on robotaxis ---------------------------- [It’s been a rough start to 2024 for Tesla](https://qz.com/tesla-stock-q1-sales-elon-musk-deliveries-production-1851384492), as [Elon Musk’s EV maker struggles with sales](https://qz.com/elon-musk-tesla-electric-vehicle-deliveries-sales-q1-1851380928) and more. Tesla stock is still down more than 31% so far this year, but it was recovering some ground on Monday. Shares in the electric vehicle manufacturer, which holds [10,500 bitcoins worth $336 million,](https://www.coingecko.com/en/public-companies-bitcoin) were up 4.5% in Monday morning trading to $172 per share. Musk late last week teased an [unveiling of a Tesla robotaxi](https://twitter.com/elonmusk/status/1776351450542768368) in August.

Satoshi Nakamoto, a person or group whose identity remains unknown to this day, [created the digital currency Bitcoin](https://qz.com/bitcoin-history-creation-origin-price-1851347621) on Jan. 3, 2009. A whole cryptocurrency industry was born out of it, one that [has become increasingly mainstream](https://qz.com/best-spot-bitcoin-etfs-1851340637). Bitcoin prices have been on a roller-coaster ride over the past few months. But something coming soon that’s known as [a Bitcoin “halving” event](https://qz.com/bitcoin-halving-event-explained-price-1851300020) could shoot them to new highs throughout the year. [Bitcoin halving](https://qz.com/bitcoin-halving-event-explained-price-1851300020), a technical event that occurs every four years and cuts the reward for mining new Bitcoin by half. The feature is important to understand how Bitcoin functions. In mid-April, the reward miners get for minting new Bitcoin will be [cut in half, from 6.25 bitcoin to 3.125](https://qz.com/bitcoin-new-buyers-value-1851242532). This happens every four years and will continue until all 21 million Bitcoin are mined. While the exact date of the halving event remains unclear, it’s set to take place on or before April 19. Halving was written into Bitcoin’s code from the beginning [to ensure scarcity and safeguard against inflation](https://www.forbes.com/advisor/investing/cryptocurrency/bitcoin-halving/). Previous [halving events coincided with huge Bitcoin price increases](https://www.nasdaq.com/articles/history-says-this-is-what-happens-after-bitcoin-halving). Here’s what to know about the coming Bitcoin halving, as well as what it will mean for Bitcoin’s price and more. What is Bitcoin mining? How is Bitcoin generated? ------------------------------------------------- Bitcoin is generated by miners who use computer hardware to solve complex mathematical problems and verify transactions on the blockchain network. In return, miners receive a predetermined amount of Bitcoin for each block of transactions they process. The reward, which is given to miners who verify the transaction, is a way to create more Bitcoin. The first Bitcoin block, also known as the [Genesis Block, was created by Nakamoto in 2009](https://qz.com/bitcoin-history-creation-origin-price-1851347621) and was rewarded with 50 Bitcoin. Why is Bitcoin halving important? --------------------------------- Bitcoin’s supply is limited to a maximum of 21 million coins. This means no additional coins will be generated or created after reaching that 21 million limit. Nakamoto introduced the concept of Bitcoin halving to limit the quantity of the cryptocurrency and make it more valuable to combat inflation. That’s why Bitcoin halving is important, as it prevents the uncontrolled creation of Bitcoin. When were the other Bitcoin halving events? ------------------------------------------- The Bitcoin blockchain creates 210,000 new blocks in about four years, which is the standard established by its creators. The first reward was 50 bitcoin in 2009, when Bitcoin’s price was almost 0. * [The first Bitcoin halving](https://www.nasdaq.com/articles/history-says-this-is-what-happens-after-bitcoin-halving) happened on Nov. 28, 2012, when the reward for mining a block was reduced from 50 Bitcoin to 25. At that time, Bitcoin’s price was $12. * The second halving event occurred on July 9, 2016, when the reward was reduced from 25 Bitcoin to 12.5. The price of the cryptocurrency was then $658. * The third and most recent halving occurred on May 11, 2020, when the Bitcoin incentive was reduced by half to 6.25 Bitcoin. At that time, Bitcoin was at $8,601. Bitcoin’s next halving is expected to take place on or before April 19, reducing the mining reward to 3.125 Bitcoin. The process will continue until roughly 2140. This means that after the 2024 halving, 29 more halving events will occur before the final reward of just one satoshi (the smallest unit of the Bitcoin) is granted. **What happened after the previous Bitcoin halving events? Is now a good time to buy Bitcoin?** ----------------------------------------------------------------------------------------------- [Bitcoin halving has historically boosted the price](https://www.nasdaq.com/articles/history-says-this-is-what-happens-after-bitcoin-halving) of the cryptocurrency. For instance, after the first Bitcoin halving in 2012, the price was $12. It went up to $44 in 100 days, and then $135 in 300 days. Similarly, after the 2016 halving event, the flagship cryptocurrency went from $658 to $1,551 in 300 days. And in the most recent halving of 2020, the price of $8,601 went to $50,941 within 300 days. CoinGecko, a crypto tracking website, [finds that Bitcoin’s price has increased by 103,877%](https://www.coingecko.com/en/coins/bitcoin) since 2013. Bitcoin was trading at about $70,000 in mid-April, just 4.4% off its all-time high reached on March 14, 2024. The upcoming Bitcoin halving event and [the inflows into the spot Bitcoin ETF market](https://qz.com/bitcoin-price-halving-tesla-coinbase-microstrategy-stoc-1851394763) have spread excitement among investors, and some key figures in the crypto industry believe [Bitcoin’s price can go to $100,000](https://qz.com/bitcoin-next-target-100-000-adam-back-says-its-overdue-1851336614). How long will Bitcoin mining go on? ----------------------------------- Satoshi Nakamoto set a cap on the supply of Bitcoin at 21 million, which limits the number of Bitcoin that can ever exist. As of March 2024, there were approximately 19.65 million Bitcoin in circulation, with only about 1.35 million left to be released through mining rewards. It is estimated that by 2140, when all 21 million Bitcoin will be mined, that the network will stop creating new bitcoins. What will happen to miners if all Bitcoin are mined? ------------------------------------------------------- Bitcoin miners generate revenue through block rewards and transaction fees. Once all 21 million Bitcoin have been mined, the block reward will decrease to zero. But miners could continue to earn an increasing portion of their income from transaction fees. Will there be a loss to miners as the reward is halved? ------------------------------------------------------- After the Bitcoin halving, the block reward for miners is reduced by half. This year, it will be reduced from 6.25 Bitcoin to 3.125 Bitcoin. In the short run, the reduction in block rewards could potentially impact miners, requiring them to invest in more advanced mining equipment to remain competitive. That said, Bitcoin’s price will likely rise, as it always has after previous halvings. So that means miners may earn enough profit even with a reduced Bitcoin reward. How is Bitcoin halving going to impact the environment? ------------------------------------------------------- Bitcoin mining is notorious for consuming energy, leading to concerns [among climate activists seeking to ban it.](https://www.forbes.com/sites/digital-assets/2023/04/21/3-environmentalists-fighting-climate-change-with-bitcoin/?sh=13ed0b9b7b1c) An online tool from the University of Cambridge says that [Bitcoin’s annual energy consumption is equivalent to that of Switzerland](https://ccaf.io/cbnsi/cbeci). Experts have tried to find more eco-friendly ways to make Bitcoin, and there are concerns about how halving will impact electricity consumption. With every Bitcoin halving, the competition to verify transactions increases. This forces miners to upgrade to advanced ASIC miner rigs that maximize productivity and minimize power consumption. So Bitcoin halving can help a little — but it’s definitely not “a greener way” for generating Bitcoin.

Bitcoin is going through a topsy-turvy phase as the so-called [Bitcoin “halving” event is on the horizon.](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) The top cryptocurrency jumped Monday after [Hong Kong approved spot Bitcoin ETFs](https://qz.com/bitcoin-hong-kong-etf-1851410344), but it fell again soon after. The cryptocurrency continued its decline on Tuesday morning, with a drop of more than 4% in a day, to less than $63,000. The sentiment has spread across the crypto market. The second-largest cryptocurrency, Ether, was trading just above $3,000 on Tuesday after experiencing a more than 4% decline in the past 24 hours. The situation with Solana was worse, as it fell 12% in a day and almost 25% in a week to hover around $132. [The top meme coin, Doge](https://qz.com/altcoins-bitcoin-crypto-doge-shiba-inu-ether-1851329185), declined more than 5% Tuesday, to $0.15, [according to CoinMarketCap.](https://coinmarketcap.com/) Bitcoin volatility will continue for some time ---------------------------------------------- [Bitcoin will undergo the halving phase](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) around April 19, cutting the current mining rate to 3.125 Bitcoin from 6.25 Bitcoin. This is an integral part of the Bitcoin blockchain system, which creates a monetary system that controls inflation. While this major event has been projected to possibly increase Bitcoin’s price, right now, Bitcoin’s price has been increasingly volatile, and will likely continue to be going into the halving. Meanwhile, the founder of 10X Research, Markus Thielen, has also turned bearish on Bitcoin price amid fading chances of Fed rate cuts and rising bond yields, [CoinDesk reports.](https://www.coindesk.com/markets/2024/04/16/analyst-who-called-bitcoins-pre-halving-rally-to-70k-turns-bearish/) Bitcoin ETFs are having a hard time ----------------------------------- [Spot Bitcoin ETFs](https://qz.com/best-spot-bitcoin-etfs-1851340637) that were [driving Bitcoin to another level in the past month](https://qz.com/bitcoin-etfs-1-billion-rally-crypto-1851332135) are now seeing massive outflows these days. Over the past two days, only BlackRock’s iShares Bitcoin Trust (IBIT) has seen inflows, while all other Bitcoin ETFs have seen zero or lower inflows, according to [Farside.](https://farside.co.uk/?p=997) The iShares Bitcoin Trust (IBIT) recorded a net inflow of $73.4 million on April 15, a decline from the previous day’s inflow of $111.1 million. [The Grayscale Bitcoin Trust (GBTC), which has continuously seen outflows](https://qz.com/bitcoin-etfs-are-soaring-but-gbtc-is-struggling-1851379317) for a month, experienced $110.1 million in outflows yesterday.

Bitcoin is getting jittery before [the big “halving” event](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) scheduled for Friday. The top cryptocurrency fell to $59,900 on Wednesday for the first time since early March, almost 17% below its all-time high. Many of the other major cryptocurrencies also dropped Wednesday, including the second-largest, Ether, which has gone below $3,000, according to crypto tracking website [CoinMarketCap](https://coinmarketcap.com/). [The Bitcoin halving](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) is due on April 19, cutting the current mining rate to 3.125 Bitcoin from 6.25 Bitcoin. Halving is an integral part of the Bitcoin blockchain system, which creates a monetary system that controls inflation. While this major event has been projected to possibly increase Bitcoin’s price in the long term, Bitcoin’s price has been increasingly volatile recently and will likely continue to be going into the halving. Why this Bitcoin halving is different ------------------------------------- There has been a lot of discussion about this year’s Bitcoin halving being different from all the previous such events. The cryptocurrency’s price [reached its peak](https://qz.com/bitcoin-new-record-halving-event-1851330984) a month before the halving event, which has never happened before. Sam Callahan, a senior analyst at Swan Bitcoin, a Bitcoin financial services firm, says Bitcoin is currently in a consolidation phase. “The recent volatility is likely a result of short-term traders placing bets on the outcome of the highly anticipated halving event,” Callahan said in an email. “If an investor chooses to own Bitcoin, short-term volatility should be expected, but if they zoom out, Bitcoin’s long-term trend remains clear.” Bitcoin price may not rise quickly after halving ------------------------------------------------ [Bitcoin halving has historically boosted the price](https://www.nasdaq.com/articles/history-says-this-is-what-happens-after-bitcoin-halving) of the cryptocurrency. For instance, after the first Bitcoin halving in 2012, the price was $12. It went up to $44 100 days after the event and $135 after 300 days. Similarly, after the 2016 halving event, the cryptocurrency went from $658 to $1,551 in 300 days. And in the most recent halving of 2020, the price of $8,601 went to $50,941 within 300 days. **Read more**: [The big Bitcoin ‘halving’ event is almost here. We’ve got answers to all your questions](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) [CoinDesk reports](https://www.coindesk.com/markets/2024/04/17/goldman-cautions-against-extrapolating-previous-bitcoin-halving-cycles-for-price-predictions/) that Goldman Sachs warns caution due to unpredictable macroeconomic factors regarding Bitcoin’s upcoming halving. “Historically, the previous three halvings have been accompanied by BTC price appreciation after the halving, although the time it took to reach the all-time highs differs significantly,” said Goldman’s Fixed Income, Currencies and Commodities (FICC) and Equities team per [CoinDesk.](https://www.coindesk.com/markets/2024/04/17/goldman-cautions-against-extrapolating-previous-bitcoin-halving-cycles-for-price-predictions/) “Caution should be taken against extrapolating the past cycles and the impact of halving, given the respective prevailing macro conditions.” In the midst of investor nervousness as well as Bitcoin’s volatility, Rennick Palley, a Founding Partner at Stratos, a crypto venture capital firm, remains optimistic about Bitcoin’s long-term performance. “There are two headwinds for Bitcoin in the short term, the volatile pre-halving period as well as prior all-time highs, which typically take 2 to 3 attempts to definitively breach,” he said in an email. “However we expect bitcoin to break through this by mid summer and continue towards 150k plus by 2025.”

This year’s [Bitcoin “halving” event](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) will be different than past ones, as the top cryptocurrency might actually lose value in the aftermath instead of rallying. That’s according to an analysis from JPMorgan, [CoinDesk reports](https://www.coindesk.com/markets/2024/04/18/bitcoin-likely-to-drop-after-the-halving-jpmorgan-says/). The bank has predicted a decline in the value of the world’s largest cryptocurrency due to overbought market conditions. Moreover, the current cryptocurrency price of approximately $61,200 remains above the bank’s volatility-adjusted comparison with gold of $45,000, CoinDesk [reports](https://www.coindesk.com/markets/2024/04/18/bitcoin-likely-to-drop-after-the-halving-jpmorgan-says/). [The Bitcoin halving](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) will occur around April 19-20, cutting the current mining rate to 3.125 Bitcoin from 6.25 Bitcoin. Halving is an integral part of the Bitcoin blockchain system, which creates a monetary system that controls inflation. After briefly [dropping below $60,000 a day earlier](https://qz.com/bitcoin-below-60-000-bitcoin-halving-crypto-1851416763), Bitcoin was down 1.17% on Thursday morning, hovering around $62,000, according to [CoinMarketCap.](https://coinmarketcap.com/) Why this year’s Bitcoin halving is different -------------------------------------------- There has been a lot of discussion about this year’s Bitcoin halving being different from all the previous such events, primarily because the top cryptocurrency’s price [reached its peak](https://qz.com/bitcoin-new-record-halving-event-1851330984) a month before the halving event, which has never happened before. Historically, [Bitcoin halving has boosted the price](https://www.nasdaq.com/articles/history-says-this-is-what-happens-after-bitcoin-halving) of the cryptocurrency. For instance, after the first Bitcoin halving in 2012, the price was $12. It went up to $44 100 days after the event and $135 after 300 days. Similarly, after the 2016 halving event, the cryptocurrency went from $658 to $1,551 in 300 days. And in the most recent halving of 2020, the price of $8,601 went to $50,941 within 300 days. **Read more**: [The big Bitcoin ‘halving’ event is almost here. We’ve got answers to all your questions](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) This time around, banking giants are not sure that the trend will continue given the market conditions. Recently, Goldman Sachs [warned caution](https://www.coindesk.com/markets/2024/04/17/goldman-cautions-against-extrapolating-previous-bitcoin-halving-cycles-for-price-predictions/) due to unpredictable macroeconomic factors regarding Bitcoin’s upcoming halving[.](https://www.coindesk.com/markets/2024/04/17/goldman-cautions-against-extrapolating-previous-bitcoin-halving-cycles-for-price-predictions/) “Historically, the previous three halvings have been accompanied by BTC price appreciation after the halving, although the time it took to reach the all-time highs differs significantly,” said Goldman’s Fixed Income, Currencies and Commodities (FICC) and Equities team, per [CoinDesk.](https://www.coindesk.com/markets/2024/04/17/goldman-cautions-against-extrapolating-previous-bitcoin-halving-cycles-for-price-predictions/) “Caution should be taken against extrapolating the past cycles and the impact of halving, given the respective prevailing macro conditions.”

After [days of tumultuous trading](https://qz.com/bitcoin-down-bitcoin-halving-spot-bitcoin-etfs-1851413023), [Bitcoin](https://qz.com/bitcoin-history-creation-origin-price-1851347621) finally returned to above the $65,000-level Friday morning, thanks to its [big “halving” event](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085). The jump in Bitcoin price is a relief for investors after analysts at big banks including [JPMorgan and Goldman Sachs have been less confident about the top cryptocurrency](https://qz.com/bitcoin-bicoin-halving-jpmorgan-goldman-sachs-1851418943) in their recent reports. [The Bitcoin “halving” event](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) will cut the reward miners get for creating new Bitcoin in half, from 6.25 Bitcoin to 3.125 Bitcoin. [Halving is an integral part of the Bitcoin blockchain system](https://qz.com/bitcoin-halving-event-explained-price-1851300020), which creates a monetary system that controls inflation. Halving happens every four years. The positive sentiment spread across the crypto sphere, lifting the global crypto market cap to $2.35 trillion, 4% higher than the previous day, [according to CoinMarketCap.](https://coinmarketcap.com/) On Friday morning, Ether, the second-largest cryptocurrency by market cap, crossed the $3,000 mark after days with a nearly 2% jump. Ethereum-killer Solana was trading at $143, a 7% hike in the past 24 hours. Top memecoins such as Dogecoin and Shiba Inu also rose 4% each, trading at $0.15 and $$0.00002296, respectively. [#BitcoinHalving](https://twitter.com/search?q=%23BitcoinHalving&src=typeahead_click&f=top) was trending Friday morning on X as crypto fans celebrates the event. The crypto community is watching [Bitcoin and other cryptocurrencies closely during and after the halving.](https://qz.com/bitcoin-halving-dogecoin-ether-solana-litecoin-1851420088) There has been a lot of discussion about this year’s Bitcoin halving differing from all previous such events, primarily because the top cryptocurrency’s price [reached its peak](https://qz.com/bitcoin-new-record-halving-event-1851330984) a month before the halving event. That has never happened before. Also, [the approval by the SEC](https://qz.com/bitcoin-new-record-halving-event-1851330984) to [spot Bitcoin ETFs](https://qz.com/best-spot-bitcoin-etfs-1851340637) has benefited the cryptocurrency industry as a whole.

Apr 19, 2024 12:50 PM The Bitcoin halving is imminent. Crypto mining companies are reaching for every trick in the book to survive it.  By the end of Friday, the size of [the reward](https://www.wired.com/story/bitcoin-price-record-economics/) for mining [bitcoin](https://www.wired.com/tag/bitcoin/) will have been cut in half. The event—known as the halving—takes place roughly once every four years, and it [can be fatal](https://www.wired.com/story/bitcoin-mining-halving-crypto-winter/) for the mining companies that compete for the newly minted cryptocurrency. “You don’t see that in any other industry,” says Charles Chong, director of strategy at Foundry, a company that mines bitcoin and provides services to other miners. “You’re on a treadmill. If you don’t keep running, you are going to get left behind.” The only mercy, he says, is that “you get a lot of time to prepare.” In every halving, mining companies no longer able to cover their expenses have [shut off their machines](https://blog.coinshares.com/coinshares-mining-report-the-halving-and-its-impact-on-hash-rate-and-miners-cost-structures-8646835d88ac). Smaller, backyard operations have [closed down entirely](https://www.coindesk.com/markets/2020/05/20/bitcoin-mining-difficulty-drops-by-6-in-first-adjustment-after-halving/). As unprofitable mining equipment drops from the network, the Bitcoin system recalibrates, reducing the amount of computing power (and therefore the cost) it takes to win new coins. In time, an equilibrium is restored, whereby mining becomes profitable again for those able to absorb the initial blow. But this time it’s different. In March, the price of bitcoin [rose to a record high](https://coinmarketcap.com/currencies/bitcoin/) of more than $70,000 per coin, so the danger for mining companies is reduced. In this case, although mining revenue will be cut in half, the associated earnings will still outweigh the cost to run the hardware, multiple mining companies claim. “If \[the price of\] bitcoin had not run recently, we would have had a very different post-halving environment,” says Asher Genoot, CEO of mining company Hut 8. “Right now, price is bailing a lot of folks out.” After every previous halving, the price of bitcoin has increased, leading to [speculation](https://www.cnbc.com/2024/02/29/what-bitcoin-being-halved-means-for-its-price.html) about the prospect of another upswing. But the economic design of the system [does not itself guarantee this pattern will be repeated](https://www.wired.com/story/bitcoin-price-record-economics/). The problems for miners will arise if the bitcoin price moves in the opposite direction. Because bitcoin [defies conventional valuation methods](https://www.wired.com/story/bitcoin-price-record-economics/), its price is prone to sudden and violent swings. Mining companies must ensure they are not caught off-guard. In 2021, when the price of bitcoin last rose to a record high, many mining companies [got it horribly wrong](https://www.wired.com/story/bitcoin-mining-halving-crypto-winter/). They took on [large amounts of debt](https://www.coindesk.com/business/2022/04/28/battered-bitcoin-miners-increasingly-turn-to-debt-financing/) to fund expansion and posted their mining equipment as collateral. The following year, when the price of bitcoin slumped and energy costs rose, they [struggled to meet debt repayments](https://www.bloomberg.com/news/articles/2022-11-30/crypto-lenders-woes-worsen-as-bitcoin-btc-miners-struggle-to-repay-debt?sref=YK080Hgh) and were forced to [auction off their facilities](https://www.reuters.com/markets/deals/argo-blockchain-sell-its-mining-facility-helios-65-mln-2022-12-28/) at cut-price rates and [turn over hardware to their lenders](https://www.bloomberg.com/news/articles/2023-01-12/as-loan-defaults-surge-crypto-lenders-plug-in-miners-repossessed-bitcoin-rigs?sref=YK080Hgh). Some went [bankrupt](https://www.coindesk.com/business/2022/09/22/crypto-mining-data-center-provider-compute-north-files-for-bankruptcy-protection/). Mining companies are following different strategies to protect against this eventuality. Genoot says Hut 8 has built a large treasury of bitcoin, and instead of exchanging the coins for dollars after they are mined, it is betting on a further increase in price. The money is not a “crutch” to help offset a fall into unprofitability, says Genoot, but a reserve fund to be used perhaps to scoop up discounted hardware or facilities from ailing competitors. Previously a pure-play bitcoin mining business, Hut 8 merged last year with US Bitcoin Corp, which rented space in its facilities to other mining firms. It also invested in cloud computing and AI training hardware. The effect, says Genoot, has been to diversify lines of revenue in a way that guards against a dip in the profitability of bitcoin mining. “We’ve gone for a little bit of a contrarian approach,” he says. “We see ourselves as an infrastructure platform that converts energy into new and emerging use cases.” Meanwhile Bitfarms, another large mining company, has invested heavily in both upgrading to newer mining equipment and tripling the total computing power of its fleet to 21 exahash per second, which equates at present to roughly 3 percent of the network that powers bitcoin transactions. The effect, claims Ben Gagnon, chief mining officer at Bitfarms, will be to improve energy efficiency by approximately 40 percent—to 21 watts per terrahash—while increasing the proportion of the available coins it wins. “The number one thing you can do is try to improve your energy price. But it’s the hardest thing to do,” says Gagnon. “The second thing you can do is work on your energy efficiency.” There are ways that miners can use the large quantities of energy flowing through their facilities as a shield against the volatility of the bitcoin market too. Like some of its peers, Bitfarms is supplementing its mining revenue by [making use of government grid stabilization programs](https://investor.bitfarms.com/news-events/press-releases/detail/234/bitfarms-announces-march-2024-production-and-operations), which pay large-scale consumers of energy to switch off in periods of high demand. Miners’ participation in these programs has [drawn complaints from activist groups](https://www.wired.com/story/bitcoin-mining-texas-energy-grid/), who claim they are profiting from the strain they place on the grid, but it has become an invaluable hedge against a drop in the price of bitcoin. In August 2023, when a heat wave in Texas led to a surge in energy demand, mining company Riot said it [earned $31.7 million](https://web.archive.org/web/20230906211753/https://www.riotplatforms.com/news-media/press-releases/detail/159/riot-announces-august-2023-production-and-operations-updates) through its participation in grid stabilization and only around $10 million from mining. In the four years since the previous halving, developments in software have also given miners new ways to squeeze additional micro-efficiencies from their machines. They can now ratchet up the amount of compute power produced by their equipment to earn more coins when the price of bitcoin is high or down when it is low, or switch individual machines on and off when the price of bitcoin shifts. “Before the last halving, there were no tools. You had a miner and either unplugged it or plugged it in,” says Adam Swick, chief growth officer at Marathon Digital Holdings, a public mining company. “People that invested in technology now have a whole toolbench.” Whatever the effects of the halving, says Christopher Bendiksen, a researcher at asset management company CoinShares, a number of weeks will pass before they fully crystallize. Although mining companies say they expect to remain profitable, irrespective of the hit to their revenue, Bendiksen is skeptical. “It’s going to be hard for a lot of companies,” he says. “The proof will be in the pudding.”

Cryptocurrency-related stocks surged on Monday afternoon after [Bitcoin](https://qz.com/bitcoin-history-creation-origin-price-1851347621) underwent a successful “[halving](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085)” over the weekend. As of right now, Bitcoin is trading at a [solid $66,000](https://qz.com/bitcoin-up-after-halving-66000-1851426185), following the modest rise it experienced post-halving. MicroStrategy may buy more Bitcoin ---------------------------------- MicroStrategy jumped over 12% to $1,310 in the afternoon**.** The business intelligence company, co-founded by Bitcoin-maximalist Michael Saylor, holds [174,530 Bitcoin worth $4.6 billion](https://www.coingecko.com/en/public-companies-bitcoin) and is [expected to buy more soon](https://coingape.com/michael-saylor-microstrategy-may-reveal-more-bitcoin-buy-next-week/). Saylor, [a former dot-com entrepreneur](https://fortune.com/crypto/2024/04/20/michael-saylor-net-worth-microstrategy-stock-bitcoin-holdings-btc-mstr/) who once lost $6 billion in a single day, recently [made a post on X](https://twitter.com/saylor/status/1782382446702460948?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1782382446702460948%7Ctwgr%5E19d5c8d0a1cf8b300d7838df672950397052f3a7%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fu.today%2Fembrace-bitcoin-michael-saylors-tweet-raises-heated-discussion-heres-why) urging people to embrace Bitcoin. The post included a picture of a young girl standing next to a human-like robot with the word “Bitcoin” inscribed on it. Coinbase soars as USDC grows ---------------------------- Other than [the Bitcoin halving event](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085), Coinbase is also soaring because of the increasing market capitalization of stablecoin USD Coin or USDC. USD Coin is a stablecoin co-created by Coinbase and is a source of revenue for the company. In November 2023, the market cap of USDC was $24 billion, and has now reached $34 billion, [according to CoinMarketCap](https://coinmarketcap.com/currencies/usd-coin/). The Bitcoin halving surged shares of Coinbase over 5% to $222 on Monday afternoon. In the past 12 months, Coinbase stock has risen [300% and is up 28% year to date](https://www.tipranks.com/stocks/coin)**.** Coinbase holds [9,181 Bitcoin worth $207 million](https://www.coingecko.com/en/public-companies-bitcoin). Stocks of mining companies make double-digit jumps -------------------------------------------------- Due to the successful [Bitcoin halving](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085), mining companies’ stock also soared by double digits on Monday afternoon. Riot platform, which holds 7,329 Bitcoin, has gained over 16%, and Hut 8 Corp, which holds 9,366 Bitcoin, has gained over 12%. HIVE Digital Technologies and Bitfarms also saw bullish trends, both up 5%.

Bitcoin has experienced a modest rise after its halving event, with the top cryptocurrency sitting stable at [$66,000—a nearly 2% gain—on Monday morning.](https://www.coingecko.com/en/coins/bitcoin) Bitcoin went through the [halving phase](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) on Friday and Saturday, which divided the mining reward from 6.25 Bitcoin to 3.125. Bitcoin’s price experienced weeks of volatility leading up to the event. The technical event known as ‘halving’ occurs every four years and will continue until all 21 million Bitcoin are mined. The feature is important because it creates a monetary system that controls inflation. The [process will continue until roughly 2140](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085). After the latest halving, 29 more halving events will occur before the final reward of just one satoshi (the smallest unit of the Bitcoin) is granted. Bitcoin is currently sitting at a solid support level, according to blockchain analytics firm IntotheBlock. “Bitcoin is currently positioned right on top of a key demand zone, with 1.66 million addresses having purchased it at an average price of $64,800,” [IntotheBlock posted on X](https://twitter.com/intotheblock/status/1782339943110516758). “This price point could potentially act as a strong support level should the market experience further downward pressure.” Moreover, after the halving, Bitcoin transaction fees skyrocketed to an all-time high of $127 for a short time over the weekend, [according to Bitinfo Charts.](https://bitinfocharts.com/comparison/bitcoin-transactionfees.html#alltime) Other cryptocurrencies like Ether and Solana saw a slight rise, each trading up nearly 1% as of Monday morning at $3,100 and $152, respectively. Over the last day, the global crypto market cap increased by 1.13% to $2.41 trillion, [according to CoinMarketCap.](https://coinmarketcap.com/) More crypto news ---------------- [The big Bitcoin ‘halving’ event is here and we’ve got everything you need to know](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) [5 cryptocurrencies to watch as the big Bitcoin ‘halving’ begins](https://qz.com/bitcoin-halving-dogecoin-ether-solana-litecoin-1851420088) [Grayscale plans to launch a spinoff Bitcoin ETF with lower fees](https://qz.com/grayscale-to-launch-mini-bitcoin-etf-1851425762)

[Bitcoin](https://qz.com/bitcoin-history-creation-origin-price-1851347621) has continued its April wipeout into May, falling all the way below $57,000 on Wednesday morning and technically entering into a bear market after [its worst month in almost a year-and-a-half](https://www.marketwatch.com/story/bitcoin-is-on-pace-for-its-worst-month-since-november-2022-heres-whats-driving-the-decline-e168ddad?&mod=home-page). The ongoing selloff, which sent Bitcoin’s price as low as $56,757 early Wednesday before a slight rebound, follow’s [April’s closely watched “halving” event](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) and comes ahead of Wednesday’s Federal Reserve decision on interest rates. Bitcoin is now more than 20% below its record high of $73,803 set in March, though it’s still up about 30% so far this year. Bitcoin’s previous halving events, in which the reward for miners who create more Bitcoin is cut in half, has typically been followed by big rallies in the cryptocurrency’s price. [But analysts had warned that might not be the case this time](https://qz.com/bitcoin-bicoin-halving-jpmorgan-goldman-sachs-1851418943). Bitcoin continued to shed its value Tuesday as Hong Kong’s Bitcoin and Ether ETFs failed to impress investors on their debut. [Recently, six crypto-related ETFs were listed](https://qz.com/bitcoin-hong-kong-etf-1851410344) on the Hong Kong exchange. Bitcoin ETFs contributed $8.5 million in volume, while Ether ETFs brought in $2.5 million. As a comparison, the issuers anticipated an initial volume of $100 million, as [per media reports](https://www.reuters.com/markets/currencies/asias-first-spot-bitcoin-ether-etfs-gain-hong-kong-debut-2024-04-30/). Bitcoin ETFs in the U.S. are struggling, too, with a total net inflow of $11 billion — which could have been much better if Grayscale’s GBTC had seen any inflows. According to [investment firm Farside](https://farside.co.uk/?p=997), GBTC has experienced outflows for over a month, totaling $17 billion since April 11. Over the past three days, Fidelity’s FBTC also has witnessed continuous outflows totaling $31 million. The current price drop follows a period of stability during which [Bitcoin performed well](https://qz.com/bitcoin-up-after-halving-66000-1851426185) after going through [its “halving” process.](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) The recent drop in cryptocurrency prices is due to investor jitters as [the Federal Reserve reveals it has no plans](https://qz.com/dow-jones-rate-cuts-inflation-federal-reserve-1851414249) to cut interest rates soon, and fears of stagflation [are on the rise.](https://qz.com/jamie-dimon-recession-us-economy-consumers-stagflation-1851431819)

[Bitcoin](https://qz.com/bitcoin-history-creation-origin-price-1851347621) rebounded to $64,000 on Monday morning [after experiencing a significant decline last week.](https://qz.com/bitcoin-price-drop-bear-market-1851447952) The latest surge in Bitcoin price comes amid the resurgence of [spot Bitcoin ETFs](https://qz.com/best-spot-bitcoin-etfs-1851340637). Grayscale’s Bitcoin ETF has finally seen inflows. According to data compiled by [Farside](https://farside.co.uk/?p=997), [Grayscale Bitcoin Trust (GBTC)](https://qz.com/bitcoin-etfs-are-soaring-but-gbtc-is-struggling-1851379317), which is the biggest Bitcoin ETF in terms of assets, received $63 million from investors on Friday. This marks the end of daily outflows that had been occurring for almost four months since its conversion to a spot ETF structure in January. As a result, the total inflows on all funds on Friday were $378.3 million. Grayscale [failed to receive investment, as its fee was the highest at 1.5% compared to all other spot Bitcoin ETFs.](https://qz.com/bitcoin-etfs-are-soaring-but-gbtc-is-struggling-1851379317) That’s why it [launched a spinoff version last month with a lower fee of 0.15%.](https://qz.com/grayscale-to-launch-mini-bitcoin-etf-1851425762) The bullish sentiment in the crypto market has also increased following strong earnings reports from companies such as [Coinbase, Block](https://qz.com/bitcoin-price-coinbase-block-earnings-1851454065), and [MicroStrategy](https://qz.com/bitcoin-advocate-microstrategy-reports-loss-1851446635) last week. These companies have benefited from the growing mainstream acceptance of cryptocurrency, as [the Securities and Exchange Commission and other agencies around the world approved Bitcoin ETFs](https://qz.com/bitcoin-new-record-halving-event-1851330984) earlier this year. In their latest earnings reports, they emphasized their commitment to investing in Bitcoin and developing strategies based on cryptocurrency. The surge in Bitcoin price has lifted other cryptocurrencies as well. Ether, the second-largest cryptocurrency, which was hovering around $2,800 last week, reached above $3,100 in the morning. The price of Solana and Dogecoin spiked 12% each in the past week, trading at $151 and $0.15, respectively. More Bitcoin news ----------------- [The top 5 spot Bitcoin ETFs](https://qz.com/best-spot-bitcoin-etfs-1851340637) [How to speak crypto: A glossary of terms](https://qz.com/1545916/a-cryptocurrency-glossary) [Bitcoin reached all-time high of over $73,000 in March](https://qz.com/bitcoin-new-record-halving-event-1851330984)

One month after [Bitcoin](https://qz.com/bitcoin-history-creation-origin-price-1851347621)’s big [halving event](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085), people in the crypto community want to know where the major cryptocurrency is heading. The latest [Bitcoin halving](https://qz.com/bitcoin-halving-event-explained-price-1851300020) — a technical event that cuts the reward for mining new Bitcoin by half — occurred on April 19-20, which divided the reward from 6.25 Bitcoin to 3.125. Bitcoin’s halving, a feature to ensure the cryptocurrency’s scarcity and safeguard it from inflation, happens every four years. Right now, Bitcoin’s value is hovering around $65,000 — and it’s primarily in the green because [inflation has eased and the stock market is bullish.](https://qz.com/dow-jones-industrial-average-40000-stocks-inflation-fed-1851481110) Bitcoin didn’t jump significantly after the halving process and currently hovers roughly 12% below its record high of $73,803 set in March; it’s still up about 140% in the past year. But historically, [Bitcoin has jumped after the halving event](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085). [The first Bitcoin halving](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) happened in November 2012, when the reward for mining a block was reduced from 50 Bitcoin to 25. At that time, Bitcoin’s price was $12. It went up to $44 in 100 days and then $135 in 300 days. The second halving event occurred in July 2016, when the reward was reduced from 25 Bitcoin to 12.5. The flagship cryptocurrency went from $658 to $1,551 in 300 days. At the third halving in May 2020, the Bitcoin incentive was reduced by half to 6.25 Bitcoin. At that time, Bitcoin was at $8,601, moving upward to $50,941 within 300 days. [Steven Lubka](https://www.linkedin.com/in/steven-lubka-ba1485226/), a managing director at Bitcoin financial services company [Swan Bitcoin](https://www.linkedin.com/company/swanbitcoin/), seems optimistic about the growth of the top cryptocurrency. In an email, he wrote that Bitcoin’s performance has a massive run-up ahead of the halving, which historically has not happened. “Bitcoin has never really seen a sharp rise post-halving; it generally occurs on a month-by-month basis as time progresses,” he said. [Rennick Palley,](https://www.linkedin.com/in/rennick-palley-b8747838/) founding partner at the crypto venture capital firm [Stratos](https://www.stratos.xyz/), adds that in the next 12 months following the halving, Bitcoin will probably continue its upward price movement. So why is this year’s halving different from its predecessors? It’s primarily because Bitcoin [reached its peak a month prior](https://qz.com/bitcoin-new-record-halving-event-1851330984), making it difficult to maintain the same momentum. Plus, experts add, the [mainstream adoption of Bitcoin](https://qz.com/bitcoin-uk-etn-new-high-1851324449) and the launch of [spot Bitcoin ETFs](https://qz.com/best-spot-bitcoin-etfs-1851340637) have changed the factors that affect the price movement of the top cryptocurrency. According to Palley, the price of Bitcoin is now largely determined by global liquidity dynamics and adoption. “As fiat money continues to be printed and as more people around the world recognize the value of Bitcoin as a store of value, the price of Bitcoin in dollar terms will continue to rise,” he said. Many will continue to be surprised by Bitcoin’s changes in dynamics, but the analysts say they won’t be surprised if the flagship cryptocurrency crosses the $100,000 mark this year. “It’s always difficult to forecast an exact timeframe, but I expect six-figure Bitcoin on the horizon,” Lubka said. CoinGecko, a crypto tracking website, [finds that Bitcoin’s price has increased by 96,302%](https://www.coingecko.com/en/coins/bitcoin) since 2013.

[Bitcoin](https://qz.com/bitcoin-history-creation-origin-price-1851347621) is currently facing resistance around the $60,000 mark, and despite earlier predictions by some crypto experts, it appears increasingly [unlikely that the top cryptocurrency will reach $100,000 by the end of 2024.](https://qz.com/bitcoin-halving-price-value-forecast-1851482904) This stagnation is also weighing down the broader cryptocurrency market, which has struggled to achieve significant growth in the past few months. Several factors are contributing to Bitcoin’s stalled momentum, but a key reason is its growing correlation with macroeconomic conditions. As Bitcoin matures, it is becoming more susceptible to the influences of global market dynamics and economic factors, which now play a larger role in shaping its trajectory than in the past. **Bitcoin made a comeback in 2024** ----------------------------------- [Bitcoin](https://qz.com/bitcoin-history-creation-origin-price-1851347621) made a major comeback in 2024 after suffering through a [prolonged crypto winter brought about by FTX’s collapse](https://qz.com/sam-bankman-fried-ftx-sbf-rise-fall-prison-sentence-1851354212). It underwent a major technical event known as [“the halving”](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) and is increasingly gaining mainstream acceptance. Following the approval of the [spot Bitcoin ETFs](https://qz.com/best-spot-bitcoin-etfs-1851340637) from the SEC, the leading cryptocurrency [peaked at $73,737 in March](https://qz.com/bitcoin-new-record-halving-event-1851330984). [Adam Back, a prominent figure in the crypto world](https://u.today/im-not-satoshi-adam-back-says) and one of the earliest cypherpunks who helped establish Bitcoin’s ideological foundation, said [Bitcoin’s rise to the $100,000 mark is long overdue](https://bitcoinmagazine.com/markets/adam-back-100000-bitcoin-price-overdue) and should happen soon. However, it appears unlikely that the leading cryptocurrency will reach the $100,000 mark or even come close to it in 2024. This is primarily due to the complexities involved, making it a challenging feat to achieve. Crypto expert [Noelle Acheson](https://www.linkedin.com/in/noelleacheson/) believes that Bitcoin can cross the $100,000 mark—it’s just not likely to happen this year. In an email, she told Quartz that if the political uncertainty is resolved favorably—for example, if former President Donald Trump wins in November or if Vice President Kamala Harris expresses support for crypto development—then it is certainly possible, especially given the likelihood of an easing interest rate cycle. “I’m not saying it _will_ happen \[this year\], just that it’s not an outrageous prediction.” Jag Kooner, Head of Derivatives at the crypto exchange Bitfinex [LEO](https://qz.com/quote/LEO), echoed Acheson’s statement by saying that, based on historical patterns and the expectations set by events like halvings, Bitcoin could reach $100,000. “However, these forecasts often fail to account for unexpected macroeconomic shifts, the market’s maturation, and changes in investor behavior,” he stated in an email. **Blame halving for Bitcoin’s resistance?** ------------------------------------------- After [the Bitcoin halving](https://qz.com/bitcoin-halving-event-cryptocurrency-price-buy-mining-1851406085) in April, which reduced mining rewards from 6.25 to 3.125 Bitcoin, the leading cryptocurrency did not experience the significant price surge seen in previous halvings. Acheson noted that halving events often lead to a temporary decline in Bitcoin’s price in the months that follow, so the current sluggishness is not unexpected. However, this year presents a unique set of circumstances. “This year is weaker than other cycles, however, most likely due to the political factors and to the AI frenzy,” she added. Kooner attributed the current market’s complexity to various factors, including institutional investment patterns, regulatory developments, and macroeconomic conditions affecting Bitcoin price performance. “There is always a ‘buffer period’ post halving that usually occurs,” he added. “While the immediate aftermath of the halving has seen some volatility, this period might represent a typical post-halving re-accumulation phase, which has been observed in previous cycles.” **What’s the price prediction for Bitcoin in 2024?** ---------------------------------------------------- Acheson refrained from making specific price predictions for Bitcoin in 2024 but highlighted an intriguing historical pattern. She pointed out that between the end of August and December 2020, following the previous halving, Bitcoin’s price surged by 270%. Within the same time frame, for Bitcoin to reach $100,000 by the end of this year, it would only need to rise by 70%, she said. Kooner considers the $63,000 to $65,000 range crucial for Bitcoin’s market dynamics. He views Bitcoin’s ability to maintain its price above or below this level as a key indicator of market strength, as it reflects the cost basis for short-term holders and ETF buyers. “We also expect some traditional finance de-risking and a sell-the-news event causing a price decline post the actual rate cut in September. However, as long as equities hold up well in Q4 2024, we expect the consolidation period to be over by then,” he added.

[Bitcoin is now above $100,000](https://qz.com/bitcoin-price-hits-100-000-all-time-high-trump-crypto-1851704990), and with that, a big milestone has been achieved. The leading cryptocurrency reached [$101,250 on the night of Wednesday, December 4,](https://www.coingecko.com/en/coins/bitcoin) and then hit [an all-time high of $103,679](https://www.coingecko.com/en/coins/bitcoin) on December 5. [Bitcoin](https://qz.com/bitcoin-history-creation-origin-price-1851347621) crossing the $100,000 mark is much more than just a numerical milestone — it’s a watershed moment for the cryptocurrency that started trading at just $1 in 2011. Despite years of criticism from traditional financial institutions and predictions of collapse from prominent economists, Bitcoin has continued to gain mainstream acceptance. And now, with this new lofty valuation and the incoming administration’s pro-crypto stance, all eyes are on where Bitcoin’s journey will go from here. Cryptocurrency advocates are already heralding this moment as transformative. [Petr Kozyakov](https://www.linkedin.com/in/petr-kozyakov-8b536938/), co-founder and CEO of Mercuryo, a London-based leading payment infrastructure platform in the digital token space, told Quartz via email that Bitcoin’s milestone comes as industry figures anticipate widespread adoption “Cryptocurrency is destined to reach mass adoption in just the same way as the World Wide Web has today,” he said. Trump served as a catalyst in Bitcoin’s journey ----------------------------------------------- Since Trump’s election victory in November, Bitcoin’s value has increased 54%, with many analysts citing his pro-cryptocurrency platform as a key market driver. The President-elect, who frequently promoted cryptocurrency adoption during his campaign, has [taken credit for the surge](https://qz.com/trump-credit-bitcoin-100-000-record-crypto-sec-atkins-1851714261). Cryptocurrency analysts say his early transition moves were decisive. [Arthur Azizov,](https://www.linkedin.com/in/artur-azizov-b72830148/) CEO of B2BINPAY, an all-in-one crypto ecosystem for businesses, told Quartz via email that Trump’s decision to appoint pro-crypto advocate Paul Atkins as SEC Chairman paved the way for Bitcoin to finally surpass the psychological $100,000 barrier. Bitcoin ETFs played a major role in the rise of Bitcoin ------------------------------------------------------- The Bitcoin rally had momentum even before Trump’s victory. In January 2024, the [SEC’s approval](https://qz.com/bitcoin-new-record-halving-event-1851330984) of [spot Bitcoin ETFs](https://qz.com/best-spot-bitcoin-etfs-1851340637) gave greater legitimacy to the cryptocurrency. [Matt Mena](https://www.linkedin.com/in/matt-mena-87670b169/), a crypto research strategist at 21Shares—the world’s largest global issuer of crypto exchange-traded products—said in an email the Bitcoin ETFs have seen unprecedented investor interest since their January launch. The $100K milestone not only affirms the community’s long-term confidence, according to Mena, but also sends a powerful message to institutions, corporations, sovereign funds, skeptics, and hesitant investors. “Bitcoin has entered a new phase of adoption and recognition as a store of value and a transformative asset class,” he said. Where will Bitcoin’s price go from here? ---------------------------------------- While some celebrate Bitcoin reaching six figures, analysts remain divided on its near-term trajectory. Azizov cautioned that price volatility remains a factor in cryptocurrency markets, even at these elevated levels. “By year-end, Bitcoin’s price will consolidate around $100,000 before retracing to five-digit levels, potentially settling near $85,000 in the following months,” he added. While some analysts predict a price pullback, 21Shares’ Matt Mena argues this milestone marks just the start of a broader transformation in cryptocurrency markets. The market, he said, is already eyeing $110,000 as the next target. “Bitcoin will maintain its momentum leading into Q1 of 2025, well above the $100K mark,” Mena said. While this optimism fuels expectations, it also underscores the growing confidence in Bitcoin’s long-term potential.”

_This story incorporates reporting from_ [_Inside Bitcoins_](https://insidebitcoins.com/news/blackrock-ceo-larry-fink-sees-bitcoin-hitting-700k-as-goldman-sachs-ceo-says-btc-isnt-a-threat-to-the-dollar) _and_ [_Inside Bitcoins_](https://insidebitcoins.com/news/bitcoin-price-prediction-as-blackrock-ceo-larry-fink-predicts-btc-will-hit-700k-this-no-kyc-wallet-token-ico-closes-on-8m)_._ The cryptocurrency market is experiencing volatility as major coins see substantial price movements. Bitcoin, having recently dipped more than 3% to $102,661.93, has secured attention at [the World Economic Forum in Davos, Switzerland](https://qz.com/davos-2025-world-economic-forum-trump-tech-business-1851742100). BlackRock CEO Larry Fink offered a bold prediction of Bitcoin reaching a remarkable $700,000. Fink points to small allocations by asset managers, alongside Bitcoin’s potential to counter fiat currency debasement, as key drivers behind this projection. During his discussion with Bloomberg on January 22, Fink outlined how a mere 2-5% allocation to Bitcoin from asset managers globally could propel its price to the target figure. He contends that investors concerned about the potential weakening of their domestic fiat currencies, or who have concerns about their country’s political and economic stability, can turn to Bitcoin as a reliable hedge against such risks. According to Fink, Bitcoin’s global nature enables it to act as a “secure international currency” to mitigate local uncertainties. In a contrasting viewpoint, Goldman Sachs CEO David Solomon, talking to CNBC, emphasized that Bitcoin does not pose a threat to the U.S. dollar, yet acknowledged its significance as an “interesting speculative asset.” Solomon affirmed his belief in the dollar’s dominance but expressed keen interest in the technology underpinning Bitcoin. He hinted that blockchain could eventually reduce operational friction within the broader financial system, although regulatory and operational restrictions currently limit banks’ direct involvement with Bitcoin. These remarks occurred amid a broader, albeit mild, pullback in Bitcoin’s price. Analysts observed the trend with Bitcoin slipping approximately 2% further, trading at $102,628, accompanied by a noticeable decrease in trading volume — down 20% to $61 billion. The fluctuation highlights the current unstable nature of the crypto market, posing both opportunities and pitfalls for investors. Fink’s optimistic outlook contrasts notably with the general market sentiment characterized by recent price declines. His insights present a longer-term bullish narrative amidst current short-term price corrections. Whether Bitcoin’s price will approach his ambitious forecast may depend on broader adoption trends and how effectively the asset addresses investors’ demands for stability and inflation protection. As global economic conditions evolve, these factors will play pivotal roles in shaping Bitcoin’s trajectory. _Quartz Intelligence Newsroom uses generative artificial intelligence to report on business trends. This is the first phase of an experimental new version of reporting. While we strive for accuracy and timeliness, due to the experimental nature of this technology we cannot guarantee that we’ll always be successful in that regard. If you see errors in this article, please let us know at_ [[email protected]_](mailto:[email protected])_._