So it happened exactly what the cryptocurrency market analysts predicted for Novinky.cz. At the end of April, a halving took place, i.e. a reduction in the remuneration for miners. The exchange rate reacted to this by falling, but then started to rise.
Before the halving – on Friday, April 19 – bitcoin traded for CZK 1,549,107. Immediately after the halving, the exchange rate fell slightly to CZK 1,518,075, but the decline continued in the following days and weeks.
Bitcoin is flying down, having its worst month since the end of 2022
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Photo: News
The development of the value of Bitcoin in the last week
According to current results, bitcoin found its bottom at the end of May, when one virtual coin traded for CZK 1,335,113. But already during the past weekend, the course started to strengthen significantly again. On Monday before noon, one virtual coin was offered for 1,521,166 CZK.
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.
A new record was set in March
It is worth remembering, however, that this year, otherwise, bitcoin experienced a stormy growth. At the end of January, the value was only CZK 946,227. In the middle of the first month of this year, however, an impulse came that caused a dramatic increase.
We are talking about the approval of 11 bitcoin ETFs in the US – the abbreviation ETF refers to an exchange-traded fund. As a result, investors became much more interested in the most famous cryptocurrency in the world, which culminated in the setting of a new bitcoin record in mid-March, when one virtual coin was traded for CZK 1,704,367. The exchange rate has never been higher.
From this point of view, even the current value exceeding 1.5 million crowns is a great success, since it is an increase of more than half a million crowns since the beginning of the year.
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. At the same time, miners receive fees from other users for their activity. The reduction in their reward 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.
Ethereum is also strengthening
The exchange rate of Bitcoin has traditionally been copied by other cryptocurrencies. For example, ethereum was offered for CZK 67,007 at the beginning of May, but currently the rate has jumped to CZK 74,486.
For the sake of completeness, let’s add that ethereum started this year with a rate of CZK 51,890. The second most famous 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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