Cryptocurrency Bourses Uproot Fourteen Billion USD Overnight

The digital currency market lost fourteen billion USD overnight as BTC price plunged from ninety-two hundred USD to around eighty-six hundred USD by more than six percent. The correction took place with less than 7 days remaining before the extremely expected Bitcoin block reward halving takes place on 12th May.

It is to be noted that a block reward halving is a mechanism that takes place once every 4 years which decreases the rate of BTC creation.

In the preceding halvings, BTC witnessed sharp pullbacks before and after halving. Ahead of a key happening such as a BTC halving, Bitcoin characteristically witnesses a large surge as the expectations surrounding the narrative strengthens.

Nevertheless, as the halving approaches, the interest in the halving event begins decaying. Because of that, Bitcoin witnessed sharp pullbacks after every preceding halving.

At the time of reporting, Bitcoin is trading at around 8900 USD and is up by 0.34% over the past twenty-four hours. Bitcoin has a market capitalization of around 163 Billion USD, as per coinmarketcap.