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Lisa Cantin
Lisa Cantin

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Bitcoin's 2028 Halving Expected to Reduce Volatility Further

The upcoming Bitcoin halving event, scheduled for 2028, is expected to reduce Bitcoin's volatility further. This reduction is attributed to the increased scarcity of Bitcoin, making it four times scarcer than gold.

Increased Scarcity and Reduced Volatility

The Bitcoin halving is a programmed event that occurs every four years, where the block reward for miners is reduced by half. This mechanism is built into the Bitcoin protocol to control the supply and inflation rate of the cryptocurrency.

The 2028 halving will be the fifth such event, and it is expected to have a significant impact on Bitcoin's scarcity and, consequently, its volatility. After the 2028 halving, the block reward will be reduced from 3.125 BTC to 1.5625 BTC, further limiting the supply of new Bitcoins entering the market.

This increased scarcity is a key factor in reducing Bitcoin's volatility. As the supply of new Bitcoins becomes more limited, the overall supply of the cryptocurrency becomes more inelastic, making it less susceptible to large price swings.

Compared to gold, which has a relatively stable supply, Bitcoin will become even scarcer after the 2028 halving. It is estimated that Bitcoin's inflation rate will drop to around 1.1% per year, making it four times scarcer than gold, which has an inflation rate of around 2-3% per year.

Implications for Investors and the Crypto Market

The reduced volatility in the Bitcoin market is expected to have several implications for investors and the broader cryptocurrency ecosystem.

Firstly, the decreased volatility may attract more institutional and mainstream investors to the Bitcoin market, as they often prefer assets with more stable price movements. This increased adoption and investment could further drive up the price of Bitcoin, creating a positive feedback loop.

Additionally, the reduced volatility may make Bitcoin a more attractive store of value and a potential hedge against inflation, as its price movements become more predictable and less susceptible to sudden swings. This could lead to increased demand for Bitcoin from investors seeking a more stable long-term investment option.

For the broader cryptocurrency market, the reduced volatility in Bitcoin could have a stabilizing effect, as Bitcoin is often considered the "digital gold" and a benchmark for the entire crypto ecosystem. As Bitcoin becomes more stable, it may help to reduce the overall volatility of the crypto market, making it more appealing to a wider range of investors.


The upcoming Bitcoin halving event in 2028 is expected to significantly reduce the cryptocurrency's volatility by increasing its scarcity and making it four times scarcer than gold. This reduced volatility could attract more institutional and mainstream investors, solidify Bitcoin's position as a store of value, and have a stabilizing effect on the broader cryptocurrency market. As the Bitcoin ecosystem continues to evolve, the impact of the 2028 halving will be closely watched by investors, analysts, and the crypto community at large.

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