Exchange rate movements of tens of thousands of crowns up and down easily even within a few hours are not unusual for Bitcoin. High volatility, i.e. fluctuations in value, is typical for cryptocurrencies.
At the same time, we have not seen more dramatic fluctuations since the halving. Just last week on Friday morning, one virtual coin was traded for 1,433,067 CZK, but in the afternoon the value increased to 1,549,107 CZK. On Saturday morning – that is, immediately after the halving – one virtual coin was offered for CZK 1,518,075.
Will there be rocket growth or a slump? Bitcoin is awaiting a halving
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Since then, the exchange rate gradually strengthened until it climbed to CZK 1,594,848 on Tuesday morning, but in the afternoon it fell again to CZK 1,563,897. So there can be no talk of any dramatic growth yet.
In mid-March, the value was even higher, when a new bitcoin record was set at CZK 1,704,367. This year, however, the most famous cryptocurrency started below one million, specifically at 946,227 CZK.
The dramatic increase in the exchange rate was caused in the first quarter of this year mainly by the approval of 11 bitcoin ETFs in the US – the abbreviation ETF denotes a fund traded on the stock exchange.
Bitcoin halving
Bitcoin is one of the oldest and currently most popular cryptocurrencies. This virtual currency was created already in 2009, but it has only enjoyed greater popularity in recent years. It was created so that it could not be influenced by any government or central bank.
Cybercoins are “minted” by a network of computers with specialized software programmed to release new coins at a steady but ever-decreasing rate. This is the halving just mentioned. It is a mechanism that represents one of the main advantages of Bitcoin. It allows for a gradual decline in the supply of Bitcoin, increasing its value over time.
So far, the last halving took place on the night of Friday, April 19, 2024, to Saturday, April 20, 2024.
Experts are cautious with predictions
At this point, no one can say with 100% certainty whether Bitcoin will decline or whether the rate will head upwards to new records. High volatility, i.e. fluctuations in value, is typical for cryptocurrencies. It is therefore necessary to carefully consider all risks before investing.
Cryptocurrency experts told Novinky that the growth of the exchange rate may be manifested only after a longer period of time, and shortly after the halving, the value may even decrease. “Bitcoin halvings have historically always had a very significant impact on price. If only because the basic economic equation says: a decrease in supply for the same demand means a higher price. However, it is necessary to take into account that this will not happen immediately. On the contrary, even a small correction may come before this new market dynamic has time to manifest itself,” said Roman Valihrach, founder and CEO of the Czech cryptocurrency exchange Coinmate.
How much will the halving affect the price? It has probably already been partially reflected and contributed to the rapid increase in recent months
“Furthermore, this year, the halving’s direct price impact is somewhat overshadowed by the recent approval of spot bitcoin ETFs, which brought increased investor interest to the market. In three months, over 200,000 bitcoins were bought into these ETF products from the open market, while in the same period after the halving, the emission of bitcoin will be reduced by only 41,000. Thus, some believe that the halving may lose its significance. However, I believe that the combined effect of the halving and the ETF can create interesting movements in the price of Bitcoin, although it may take several months for the effect to fully manifest itself,” added Valihrach.
“We can only speculate whether or how much the halving will be reflected in the price. We can say that it has probably already been partially reflected and contributed to the rapid increase in the price in recent months,” stated Štěpán Uherík, financial director of the company SatoshiLabs, which produces Trezor crypto-wallets, for Novinky before the halving.
He emphasized that the current situation is also unique. “Bitcoin’s price peaked before the halving itself, and not after it, as has historically been the case. It may mean that the price will not rise as much now or, on the contrary, it will rise even more and surpass the all-time high of March. But you need to be careful and remember that every wave of growth has always been followed by a decline,” added Uherík.
Ethereum is holding on to the same numbers
The bitcoin exchange rate more or less traditionally copies ethereum, so it has held up in recent days despite minor fluctuations in its value.
The second most famous cryptocurrency was offered for CZK 68,556 on Friday morning, and in the afternoon the exchange rate was already CZK 73,993. After the Bitcoin halving, one virtual coin was worth CZK 72,029, the current exchange rate is CZK 75,370.
For the sake of completeness, let’s add that ethereum started this year with a rate of CZK 51,890. The second best-known cryptocurrency set an absolute record in November 2021, when it traded for CZK 104,970.
Bitcoin strengthened by 100,000 crowns in a few hours
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