After Bitcoin’s massive price surge, book partial profit if overexposed

Bitcoin underwent its roughly quadrennial halving on April 19, reducing the mining reward by 50 per cent. Following the event, the reward for mining a new block on the Bitcoin blockchain dropped from 6.25 to 3.125 Bitcoins. From approximately $27,500 a year ago, Bitcoin is now trading at around $63,500.

Factors that drove the rally

Two factors contributed to the approximately 131 per cent increase in Bitcoin’s price over the past year. The first is the halving event; Bitcoin has undergone four such events till date, each followed by a price surge. Anticipating this, investors took positions ahead of the event, driving up prices.