Skip to content

Bitcoin (BTC) after the Halving: Will Brazil bring the course rally?

The third Bitcoin Halving took place in the evening hours of May 11. The most important thing about "halving".

Bitcoin Course (BTC) and the Halving

The Bitcoin Halving seemed to be pricing itself into the Bitcoin course within a few days. Thus, the price of the largest crypto currency by market capitalization started a rally in mid-April, rising from USD 6,600 to a brief USD 10,000 on May 7. From then on, there was a slump to just under 8,500 US dollars - the mark around which the Bitcoin exchange rate also moved up to its halving.

On May 12, the Bitcoin price was able to catch up somewhat. As reported in detail in our market update, the price of the crypto currency started into the new era after the halving with a slight plus.

Bitcoin Halving: What happened?

In Halving, the reward Miners receive for successfully mined blocks in the block chain has decreased from 12.5 BTC to 6.25 BTC.

The last 12.5 BTC block was "mined" by the F2Pool mining pool, as you can read in the Jameson Loop tweet. In it the Mining Pool has hidden an Easter Egg - a reference to an article in the New York Times. The New York Times article refers to a USD 2.3 trillion rescue package with which the US central bank system wants to protect the US economy from the consequences of the Corona crisis.

This side blow is an allusion to the uncontrolled monetary policy of the central banks, which are able to increase the available money supply as needed. The Bitcoin system, on the other hand, is designed in such a way that the distribution is technologically regulated - in addition, there is a maximum amount of BTC 21 million, which is never exceeded.

Furthermore, the hidden item is likely to be a tribute to the very first block in the block chain. Also hidden here was an article in the New York Times.

The Role of Brazil

A new report from Delphi Digital suggests that Brazil could become the key adaptation driver for the crypto currency in the coming period. The analysts suggest that the economic and political imbalance in which the South American country finds itself could lead to Brazilians turning away from the state's central bank money and towards Bitcoin. A list of exchanges operating in Brazil can be found at https://www.bvl.pt/para-brasil/.

In the report, Delphi Digital also explains that they also expect Bitcoin to be increasingly adopted in general. Which, so also the hope of many investors, should ultimately lead to a rising Bitcoin price. This is not least due to the fact that BTC is now becoming rarer than gold, which could mean for the price, we explain here.

Hash Rate Loses Traction

As expected, the hash rate rose sharply again shortly before halving, only to drop again afterwards. This indicates that mining activity has increased with regard to halving, as miners wanted to secure the more "profitable" blocks here. After all, their wages were to be halved after the halving.

Now many Bitcoin miners may be faced with the question of whether it is still worthwhile to mine the crypto currency. This in turn depends on the price of electricity. On the other hand, it depends on how high the Bitcoin exchange rate is. After all, in order to operate their business in an economically sensible way, they must also sell the mined BTC.

What has changed?

  • Compared to the last Bitcoin cycle, there has been an increase in network activity and the number of addresses using and holding Bitcoin.
  • The crypto analysts see a strong increase in small hodlers, i.e. BTC users who hold between 0 and 1 BTC. The highest increase is seen in the group "greater than zero".