Bitcoin just completed its fourth-ever ‘halving,' here's what investors need to watch now

The Bitcoin network recently underwent its fourth halving, resulting in a halving of incentives for miners. This event, which occurs roughly every four years, aims to decrease the issuance of bitcoins, creating scarcity and maintaining the cryptocurrency’s digital gold-like quality. The immediate impact of the halving will be felt by miners, who validate transactions and add them to the blockchain. Miners with access to low-cost power sources are expected to fare better in the post-halving market, while others may exit due to poor power access and capital issues. The reduction in block rewards will reduce the supply of bitcoin, reinforcing its value as a finite resource. The hash rate, which measures computational power used by miners, is expected to temporarily decline after the halving but historically recovers in the medium term. Notably, if bitcoin’s price continues to rise, it could offset the impact on miners’ economics.