Bitcoin halving likely this week: Here’s what to expect
This technical event happens every four years. It is when the rewards for Bitcoin miners are cut in half.
The crypto winter hammered cryptocurrencies on Monday as the price of a single Bitcoin fell sharply to around $25,600, an 18-month low.
The world’s largest cryptocurrency further tanked 7 percent over fears of risk-off sentiment due to a sharp rise in inflation globally, especially in the US.
Bitcoin (BTC) had reached an all-time high of over $68,000 in November 2021 and has fallen more than 60 percent since then.
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According to analysts, Bitcoin may hit a grim $14,000 this year at this rate.
In a Twitter thread, Venturefounder, a contributor at on-chain analytics platform CryptoQuant, forecasted 2022 as Bitcoin’s year to “capitulate”.
“In the next 670 days, BTC will capitulate in the next 6 months and hit cycle bottom ($14-21k), then chop around $28-40k in most of 2023 and be at ~$40k again by next halving,” one of the tweets read.
The likely bottom range at $14,000 would represent a drop of around 80 percent for Bitcoin from the $68,000 all-time high.
Ether (ETH), the second-largest cryptocurrency, also fell considerably.
Ethereum prices were hammered over the weekend, sending the world’s second-largest digital asset back below its 2018 peak.
On-chain analytics provider Glassnode reported that the Ethereum market has fallen below the ‘ETH Realized Price’ of $1,781.
On Monday, the cryptocurrency plunged to $1,355, resulting in unrealized losses of more than 40 percent.
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