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Bitcoin Halving: Impact and Insights


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Bitcoin has completed its fourth halving, reducing the block reward to 3.125 BTC. This move not only puts short-term pressure on mining income but also affects Bitcoin's inflation rate. Although the market expects this scarcity to drive up prices, the reality is different.

This halving also reveals the current state of Bitcoin demand. Despite the emergence of DeFi projects, adding new possibilities to the Bitcoin ecosystem, overall demand remains weak. Additionally, the total value locked (TVL) on-chain has not seen significant growth.

Regarding market dynamic equilibrium, the article mentions the composition and influencing factors of mining income. With the sharp decline in mining revenue, miners need to compensate for the reduction in income through an increase in coin price or transaction fees. However, this dynamic balance still needs to be observed over time.

In summary, the Bitcoin halving event presents challenges to the market but also sparks contemplation and forecasts about future market trends. With the passage of time, we will gain a clearer understanding of the impact of this event on the Bitcoin ecosystem.

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Bitcoin halving has historically been the benchmark for market uptrend.

Another interesting thing that accompanied this year's halving is the emergence of more Bitcoin L2 and Bitcoin network Defi protocols seeking to boost more investment in the Bitcoin network

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Hi

In my experience, witnessing Bitcoin halving events has always been a significant moment in the crypto space. I remember the excitement surrounding previous halvings and the speculation about their impact on prices.

I think it's important to consider the broader market dynamics when analyzing the effects of Bitcoin halving. For instance, during the last halving, I noticed a surge in short-term pressure on mining income, but also observed that the impact on Bitcoin's inflation rate wasn't immediately evident.

I suggest keeping a close eye on indicators like mining revenue and total value locked (TVL) on-chain to gauge the true impact of the halving on Bitcoin demand. Based on my experience, understanding these factors can provide valuable insights into future market trends.

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Bitcoin's price was not overly affected during this halving period. This is because there are other arguments that drive the market. For example, inflation data in the USA was announced today. Since inflation was lower than expected, the cryptocurrency market also moved positively.

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