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The air crackles with anticipation as the Bitcoin network hurtles towards its fourth halving event, expected within the next few hours. 
This pre-programmed phenomenon cuts the block reward for miners – the number of new Bitcoins generated for verifying transactions – in half. While some see it as a recipe for another digital gold rush, experts caution against blind optimism. 
<h2 data-sourcepos="5:1-6:404" id="strong-bitcoin-rewards-slashed-not-supply-strong">Bitcoin Rewards Slashed, Not Supply</h2> 
Ahead of the halving, misconceptions abound. Binance co-founder Changpeng Zhao recently clarified that the halving doesn’t mirror a stock split, which increases the total number of shares. 
In contrast, the halving reduces the rate at which new Bitcoins enter circulation, effectively tightening supply. This scarcity is a core principle behind the crypto asset’s design, aiming to mimic precious metals like gold. 
To those unfamiliar, a stock split unfolds as a corporate maneuver, dividing existing shares and thereby augmenting their quantity. Despite both a stock split and the halving maneuvering alterations in supply and inflation rate, their intentions diverge distinctly. 
<blockquote class="twitter-tweet"> 
 Someone asked me if bitcoin halving is like a stock split… We are still early. (Answer is no) 
 Happy halving! <a href="https://t.co/gxAvfOpGQH" rel="nofollow" target="_blank">pic.twitter.com/gxAvfOpGQH</a> 
 — CZ <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f536.png" alt="🔶" class="wp-smiley" style="height: 1em; max-height: 1em;"> BNB (@cz_binance) <a href="https://twitter.com/cz_binance/status/1781180083425988959?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">April 19, 2024</a>
</blockquote> 
<h2 data-sourcepos="8:1-9:435" id="strong-past-performance-not-a-guarantee-strong">Past Performance Not A Guarantee</h2> 
History offers a tantalizing glimpse. The previous three halvings coincided with significant price surges. Following the 2012 halving, Bitcoin witnessed a staggering 9,500% increase. 
The 2016 halving was followed by a more modest, yet impressive, 3,000% jump in the following year. However, analysts warn against blindly following historical trends. Market conditions and investor sentiment can significantly influence price movements. 
<img loading="lazy" decoding="async" class="aligncenter size-full" src="https://www.tradingview.com/x/q89XE1kA/" width="1835" height="883"> Bitcoin Halving: Analyst Predictions 
Plan B, the anonymous analyst behind the popular Stock-to-Flow (S2F) model, is a firm believer in the halving’s bullish influence. 
He argues that the upcoming event will follow the established pattern, driving prices upwards. 
<blockquote class="twitter-tweet"> 
 IMO this bitcoin halving will NOT be different: – All bitcoin price increase will again be around the halving – Buying 6m before the halving and selling 18m after the halving (green line) will outperform buy&amp;hold – BTC &gt; $100k in 2024 – BTC top &gt; $300k in 2025 <a href="https://t.co/lCZjnuoYMO" rel="nofollow" target="_blank">pic.twitter.com/lCZjnuoYMO</a> 
 — PlanB (@100trillionUSD) <a href="https://twitter.com/100trillionUSD/status/1780586891735101653?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">April 17, 2024</a>
</blockquote> 
Ramani Ramachandran, CEO of Router Protocol, predicts significant institutional demand during this halving, potentially surpassing previous retail demand. The convergence of these two forces promises an intriguing spectacle to observe. 
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-295453" src="https://bitcoinist.com/wp-content/uploads/2024/04/a_d348ff.png?resize=528%2C333" alt="" width="528" height="333" data-recalc-dims="1"> 
Others, like Kadan Stadelmann, CTO of Komodo Platform, take a more nuanced approach. While acknowledging historical trends, Stadelmann emphasizes the growing involvement of institutional investors as a potential factor influencing future price hikes. Early Signs Of A Price Surge? 
The market seems to be whispering its own predictions. In the 24 hours leading up to the halving, Bitcoin’s price has already climbed by nearly 5%. This could be a knee-jerk reaction by investors anticipating future scarcity or a sign of renewed confidence in the world’s leading cryptocurrency. 
Meanwhile, a&nbsp;recent <a href="https://www.independent.co.uk/tech/bitcoin-halving-price-chart-record-crypto-b2530047.html" target="_blank" rel="noopener nofollow">survey of institutional investors</a> and wealth managers revealed that 69% anticipate increased investment in Bitcoin due to the halving, while only 2% predict a reduction in investment. 
The Bitcoin halving marks a significant event in the cryptocurrency’s history, and its long-term impact will be a topic of debate for months, if not years, to come. 
Featured image from Pexels, chart from TradingView

Halving Hype Debunked: Binance Founder Says Don’t Fall For This Bitcoin Myth

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