After rallying to almost $7,000 Bitcoin is currently hovering above the critical $6,000 mark. Bitcoin plunged as low as $3,845 on 12 March followed by an impressive recovery of 80% to a high of £6,993. The digital currency has been closely mirroring the wider market turmoil sparked by the coronavirus pandemic. However, there have been signs recently that Bitcoin may be starting to set its own pace and decoupling from the global economies.
In May 2020 the next bitcoin halving will occur and could have a dramatic impact on the cryptocurrency’s price.
Bitcoin halving, (sometimes ‘halvening’) refers to the halving of the reward for mining new blocks, with miners receiving 50% fewer bitcoins for verifying transactions. Bitcoin halvings are scheduled to occur once every 210,000 blocks, roughly every four years, until the maximum supply of 21 million bitcoins has been generated by the network.