The price of the cryptocurrency, Bitcoin, fell today (Saturday) to $63,913, a drop of about 11% compared to the currency's all-time high , which was recorded on April 8 of this year with a value of $73,718. But the main event in terms of Bitcoin today was not the decrease in the value of the currency, but the HALVING process that takes place today. The crossing is a process that takes place once every four years and it means that the number of bitcoin units that can be issued every 24 hours is cut in half.
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Why is this happening and how will it affect its price?
Bitcoin came into the world in January 2009 and the founding regulations state that the number of Bitcoin units in circulation will never exceed 21 million. The regulations also determine the number of units to be issued every 24 hours, to ensure that the regulation regarding the 21 million is maintained forever. The crossing is the mechanism that will determine this, as the regulation not only determined the ultimate number of bitcoin coins in circulation, but also the number of daily issuances. As of today, 19,684,306 units have already been issued and this means that only 1,315,694 more units can be issued.
This is where the crossing event comes into play. Until today it was possible to issue 450 units every 24 hours and starting today it will be possible to issue only 225. The crossing is an event that occurs once every four years, so every four years the number of daily issues will be cut in half until there are no more issues. What is expected to happen in April of the year 2140, in 116 years or 29 crossing processes, when the number of Bitcoin units will reach the final number of 21 million.
Nir Nirshman is the CEO of the Crypto Companies Forum, a forum that unites Israeli companies that develop blockchain technologies, on which the technology of cryptocurrencies is actually based. In a conversation with Maariv he said: "The crossing is an expression of the organizational stability of Bitcoin, since since 2019 the basic elements are held exactly as stipulated in the regulations. From the Israeli point of view, Bitcoin is an opportunity for investors, since Israel is an important and leading center in blockchain technologies."
The crossing process has a decisive meaning on the business environment of cryptocurrencies in general and Bitcoin in particular. According to which, the supply of new coins will decrease significantly, which means a decrease in supply and an increase in price. But since it is a very speculative property, it is difficult to extend what will happen in the short term of the coming days, weeks and even months. Historically judging by the long term, each crossing resulted in a dramatic increase in the value of Bitcoin.
The first crossing occurred in 2012 and the number of issuances dropped to 1,800. A year later, the value of Bitcoin after this crossing rose to about five dollars compared to about $0.001 before the event. Four years later, in 2016 the approved issuances dropped to 900 every 24 hours and the value of Bitcoin a year later rose to about $420. At the crossing of 2020, the issuances every 24 hours dropped to 450 and the value of Bitcoin a year later rose to about 8,000 dollars, an increase of almost 18 times.
How much will Bitcoin rise by April 2026?
This is the million dollar question, but if we judge by the past, Bitcoin may register nice gains until April 2025.
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