In the ever-evolving world of cryptocurrencies, news feeds hold significant sway over investor sentiment and market trends. Recent macroeconomic developments, such as FED interest rate fluctuations and inflation, have amplified volatility in the crypto space. However, news flows impacting the sector extend beyond external factors. With the Bitcoin halving happening today, 19 April 2024. Forex brokers have a unique opportunity to position themselves for the anticipated post-halving crypto surge The experts at Bitpace team prepared this article for you to understand the implications of Bitcoin halving for your business, its potential impact on markets, and how Forex brokers can leverage Bitpace’s payment gateway integrations to turn challenges into opportunities.
What is Bitcoin Halving?
Halving refers to the periodic halving of mining rewards on Proof of Work consensus blockchains. Halving creates an expectation of a rise in the price of a cryptocurrency as the supply of the cryptocurrency in the market falls and demand increases. Bitcoin, first launched in 2009 and with an initial mining reward of 50 BTC per block mined, has been halving every 4 years. Thus, in 2012, mining rewards dropped to 25 BTC, in 2016 to 12.5 BTC, and in 2020 to 6.25 BTC. Today’s halving is happening now, on April 20, 2022 and the process is expected to end with the 32nd Halving in 2140. The main factor that makes halving news so important is the rise in Bitcoin with the halving of mining rewards, also known as bull seasons. Transactions in cryptocurrencies reach high levels close to the halving dates and the volatility returns to investors as uncertainty and anxiety.
How Will Bitcoin Halving Affect Markets?
Although Bitcoin and most of the cryptocurrencies in the sector have shown tremendous increases after the halving, it should be known that cryptocurrencies are considered extremely risky assets, and tend to mislead people occasionally. In the light of this information, the expected movements in the sector can be listed below:
Increased Trading Volumes: Several key factors lead to increased trading volumes during halving periods such as miners who want to cash out their cryptocurrencies due to the halving of mining rewards, investors who are buying for the expected increase in the prices based on past halving periods, or investors who want to adjust their risk management and portfolio allocation due to increased volatility.
Market Uncertainty: In past halving periods, the halving of mining rewards has caused many miners to withdraw from the industry, claiming that they are not earning enough income. Since Bitcoin mining is an essential element for the blockchain to operate securely and efficiently, current miners’ withdrawal requests can create uncertainty in the market.
Need for an Expert: Investors may need financial advice from time to time since it is news that affects the industry in general very deeply. In this context, the demand and need for Forex brokers, an important unit to be consulted, can increase.
Bitpace: Your Comfort Zone in Uncertainties
To navigate the challenges of the halving, businesses, particularly Forex brokers, can strategically position themselves by leveraging the benefits of a payment gateway integration like Bitpace’s. With its user-friendly interface, Bitpace offers settlements, payments, deposits, withdrawals, digital wallets, billing, live dashboards, and even digital asset swap capabilities all under one roof.
At Bitpace, the advantages offered to FX Brokers can be listed in the following ways:
Hold & Trade Crypto with Bitpace: The ongoing halving of cryptocurrency rewards may lead to a rise in the number of cryptocurrency transactions. Bitpace enables Forex brokers to hold cryptocurrencies securely and facilitate crypto-to-fiat or crypto-to-crypto trading, which is crucial for those looking to capitalize on the market volatility for optimal trading strategies during and after the halving.
Crypto Regulatory Compliance: As regulatory environments adjust in response to evolving cryptocurrency markets, especially around key events such as the halving, maintaining compliance becomes increasingly complex. Bitpace mitigates the legal and financial risks associated with cryptocurrency transactions by ensuring its integrated Forex brokers comply with the latest regulations.
Secure and Transparent Transactions: By providing a secure and transparent trading environment, Bitpace increases trust among investors and protects brokerage transactions from potential cyber threats and fraud.
Our user-friendly, no-fuss gateway will enable you to start collecting crypto payments from your customers. With an intuitive interface, a developer-friendly API and handy plug-ins, our gateway is easy to implement and even easier to use. Start benefiting from our crypto payment gateway today!