Bitcoin prices surged to a record high, surpassing $72,000, with expectations of further gains due to the upcoming halving event.
The halving refers to a scheduled event in Bitcoin's protocol where the reward for miners is reduced by half approximately every 4 years.
Scheduled for mid-to-late April, the upcoming halving will reduce the mining reward from 6.25 Bitcoins to 3.125 Bitcoins per block.
Bitcoin's price dynamics are heavily influenced by supply and demand, and historical data suggests that previous halvings have led to price appreciation.
Optimism surrounds the upcoming halving, fueled by increasing demand trends and the introduction of new investment vehicles like ETFs.
Bitcoin mining stocks, such as Marathon Digital and Riot Platforms, may face challenges as the halving reduces their profitability.
The mining business model is sensitive to energy prices and Bitcoin's exchange rate against traditional currencies.