Bitcoin's Price Rised Above $8,000 On Wednesday Ahead Of Key Halving In The Crypto Market

Bitcoin price surges on Wednesday rise 11% and crossed $8,000 the first time since early March.

Some analysts expect the bitcoin halving to boost the price as the next bitcoin halving is near

After the two previous halvings, we've seen the price reach an all-time high within 3-9 months which would be $20,000 in this case." said one of the analyst.

Bitcoin is currently reading around $8,762 as at the time if this report.

The Co-founder and chief executive of CoinCorner,  Danny Scott told an online news platform that coming May 12 is another bitcoin halving which in short cuts the supply of bitcoins coming into circulation in half and taking it from 12.5 bitcoin every 10 minutes to 6.25 bitcoins every 10 minutes.

What Is Bitcoin Halving?

A specific amount of bitcoin are rewards to the bitcoin miners whenever a block is produced.

Initially, when bitcoin was first launched, miners could get 50 bitcoin per block after 210,000 blocks are mines,  the block reduces by 50% and the process continue until a block becomes worth  0 bitcoin.

The current block reward is 12.5 coins per block,  which will fall to 6.25 on May 12.

Dr Garrick Hileman,  head of research at blockchain.com, said: "Bitcoin's price has been climbing of late alongside other traditional hard assets like gold in part due to concerns over the size of the monetary and fiscal response to Covid-19."

The anticipation of the 12 May bitcoin mining reward 'halving,' which will cut the supply of newly mined bitcoins in half, is also likely fuelling demand over time if current bitcoin demand levels are maintained then this reduction in new supply may help boost bitcoin.

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