- Bitcoin is approaching the most eagerly anticipated moment in its history, and markets are feeding the excitement after weeks of gains.
Cointelegraph takes a look at the major factors influencing the market just over a week before the largest cryptocurrency’s third block reward halving.
Just 8 days left till the Bitcoin halving
The next eight days will focus on one topic only for Bitcoin analysts — its third block reward halving. Technically known as the “block subsidy halving,” the event will drop the supply of “new” Bitcoins paid to miners by 50% to 6.25 BTC per block.
This immediate 50% drop in supply should have considerable knock-on effects for demand, especially taken against the historical precedent of the previous two halvings.
The impact is neatly summarized by Bitcoin’s stock-to-flow price model, which suggests that major price movements should come 1-2 years after the halving.
Cointelegraph has reported extensively on stock-to-flow’s various iterations and their forecasts.
BTC isn’t done with stocks yet
Bitcoin continues to exhibit some copycat price behavior which tracks movements on major stock markets.
As of Sunday, futures for the S&P 500 and Dow Jones among others were tanking 3%, which soon translated into a fresh price dip for BTC/USD.
At press time, the pair traded at around $8,700, down 3.7% on the day, having bounced off support at $8,500.
This post was curled from https://cointelegraph.com/news/halving-stocks-fundamentals-3-things-to-watch-in-bitcoin-this-week