Bitcoin’s fourth halving has sparked speculation about significant price surges, but Glassnode, an analytics firm, advises that investors should “ground expectations” based on historical data.
The Bitcoin halving happened less than a week ago, leading to a 50% reduction in supply inflation, increasing the issuance scarcity.Glassnode observes diminishing returns comparing epochs, with the second showing a price increase of 5,315% and a maximum drawdown of 85%. Meanwhile, the fourth epoch saw a more modest 569% increase and a 77% drawdown.
The fourth halving is also different when comparing bitcoin to gold. For the first time in history, bitcoin’s steady-state issuance rate of 0.83% becomes lower than that of gold, which is approximately 2.3%.investment in mining infrastructure. Miner revenues, while exhibiting a diminishing growth rate in USD terms, have seen a net expansion, with cumulative revenue exceeding $3 billion over the past four years.
The realized cap, which measures the capital invested in bitcoin, supports the now $1.3 trillion market cap, marking a 439% increase over the last epoch.Glassnode also noted that despite volatility and negative headlines, Bitcoin’s transfer volume has reached $106 trillion over the last four years, which shows the network’s capacity for settling transactions.insights into bitcoin’s potential rebound in a recent post on X.
AI Will be One of those Areas Where Blockchain has Genuinely Improved: Flare Network’s CEO Hugo Philion One Weekly Email Can Change Your Crypto Life.Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
Coin Coin Latest News, Coin Coin Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin price rallies on halving day, but what do futures markets show?Bitcoin price remains volatile, but futures market data highlights investors' bullish expectations.
Source: Cointelegraph - 🏆 562. / 51 Read more »