Have you heard the phrase 'Bitcoin Halving' and asked, "What the heck is that?"
The 'halving' is the reduction by 50% of the rate that the currency is mined and the reward for that mining. This purposeful slowdown of the amount of Bitcoin that is added into circulation helps to control inflation by in effect, making the cryptocurrency more scarce.
In the past 13 years, there have been three 'halvings' and each time the price of Bitcoin has dramatically risen temporarily before decreasing to a new more stable level. A halving takes place every four years.
While the next 'halving' isn't due to occur until May of 2024, the speculative excitement around these events usually corresponds with a major price increase, so keep that in mind as 2024 approaches.
Here's a bit of 'halving' history. When Bitcoin was created, the mysterious person or group calling itself Satoshi Nakamoto thoughtfully included a formula to regulate the production of the cryptocurrency into its official whitepaper.
Monday, Bitcoin dropped to a two-week low and cryptocurrency-focused stocks saw declines as China intensified its cryptocurrency crackdown.