Bitcoin becomes volatile after halving
Bitcoin just underwent its third halving. The event caused a rapid growth of crypto market’s volatility.
Average true range has risen sharply after the halving. BTC has lost over 10% of its price, which approached US$10000 earlier. Major traders and miners are adapting to the new situation.
So far Bitcoin prices saw a 20% growth in 2020. The largest cryptocurrency saw gains during the pandemic, as fiat became more volatile and a large number of people started looking for new ways to save their assets.
Halving is a planned event that is supposed to take place every four years. Essentially it cuts the rewards for mining Bitcoin by 50%. It is carried out in order to keep the total amount of Bitcoins in the world under 21 million.
Two halvings already happened. And yet, according to some crypto experts, this one is likely to be different due to a large influx of new traders and miners.