Bitcoin remains strong

After attempting to break through the critical resistance level of $29,000 in late March, Bitcoin experienced a downward trend and reached a price level of $27,000 shortly after reaching $29,000. 

Recent news cannot be separated from the OPEC+ group, which has reduced oil production levels even more than before. This is considered another key factor that has caused investors to worry about the possibility of inflation and the need to further adjust interest rates if the US inflation rate has not shown signs of decreasing.

However, in the past week there has been widespread talk among Bitcoin miners about the upcoming Bitcoin halving event, in which the reward for Bitcoin mining will be reduced by half. Based on past statistics, it is predicted that there will be less than 400 days left before the reduction occurs.

The Bitcoin system operates on the Proof-of-Work principle, which means that the person who has the right to verify the new data set to be added to the blockchain must prove themselves through physical work. In the case of Bitcoin, this is proven by users in the network competing against each other to use computers to solve mathematical equations in exchange for the right to verify transactions. This process is called "mining."

Currently, the Bitcoin network rewards miners with 6.25 coins per block which translates to approximately $177,000 USD per block. The most recent halving occurred on May 11, 2020 reducing the reward from 12.5 to 6.25 coins per block. The next halving is expected to occur in March 2024 which will reduce the reward to 3.125 coins per block. This means that there will need to be twice as much mining to maintain the same number of coins, which strengthens the overall Bitcoin network structure.

The fact that the Bitcoin mining reward decreases every four years means that there will be fewer new coins entering the market or circulating supply, resulting in a scarcity or supply constraint. Additionally, the maximum number of Bitcoins that can be created is 21 million, and as of now, approximately 19 million Bitcoins have been mined. This scarcity and limited supply have caused a price surge in the market.

From such market conditions, current market cap of the cryptocurrency market has decreased by 2.44% to $1.16 trillion but trading volume has increased by 5.89% to $327 billion USD.