The expectation of an upcoming Bitcoin (BTC) event is starting to reach its limit. The historical trend of Bitcoin was that the price reached new unprecedented highs against the background of two previous halvings.
The expectation of Bitcoin halving continues to grow
At the same time, a surge in network activity also leads to a significant increase in transaction fees. Regarding the basics of the network, the hashrate set up a new ATH just in time for the block reward halved.
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Search interest in the Bitcoin halving is now four times the level seen before 2016, according to Google Trends data cited by @runtheirstops on Twitter. Indeed, as blockchain-media previously reported, the number of searches for “Bitcoin halving” has steadily increased over the past few weeks.
In the four years since the previous halving, cryptocurrency of the highest rank in market capitalization has become even more popular. No longer a niche for discussion, BTC and cryptocurrencies, in general, may have taken a prominent place in the main discussions in finance and management.
Thus, it is perhaps unsurprising that bitcoins, half reducing expectations, quickly jumped, especially given the historical priority of BTC. Bitcoin's spot price hit new year highs after two previous 50% cuts in block subsidy rewards.
About a year and a half after July 2016 halved, the price of bitcoins, as you know, almost surpassed the line of $ 20. In fact, the last two times opened an 000-month bull run on the highest-ranking cryptocurrency, in which its price rose from $ 18 to $ 650, which is almost 19%.
Activity peak in the chain
Interest in Google search is not the only indicator of growing anticipation for the upcoming halving. Network activity is also on the rise, causing transaction fees to skyrocket as buyers continue to accumulate BTC.
Again, this accumulation, backed by trends observed by retail buyers since February 2020, indicates market expectations for another significant increase in BTC prices. It seems that even the sudden crash of Black Thursday in mid-March did little to suppress the appetite of retail buyers for bitcoins.
On the institutional side, the number of crypto derivatives and the influx of investments in instruments such as Grayscale Bitcoin Trust, also indicate a renewal of interest from players with big money.