Bitcoin halving won't bring immediate price rise

The Bitcoin halving event - which occurred over the weekend - has seen optimism around the cryptocurrency rise, but major price increases may take some time to shine through.

The halving event is coded to occur every 210,000 blocks and halves the reward Bitcoin miners get, ensuring a supply cap of 21 million Bitcoin.

Crypto.com chief operating officer Eric Anziani said reducing miner's profits will result in fewer Bitcoin coming to market but is unlikely to have an impact on prices over the coming days or weeks.

"Over a period of six months we anticipate the halving event will create even more bullish market conditions for Bitcoin," Anziani said.

"While we have witnessed some recent selling, this is very similar to the consolidation phase we've noticed in previous halving cycles and overall, we believe this event will have a positive impact on the market."

Anziani said Australians continue to adopt cryptocurrency at a rapid rate and are expected to continue to take advantage of improved market conditions.

​"Bitcoin has continued to be a resilient and highly attractive investment for institutional and retail investors," he said.

"As a company we view Bitcoin as an asset that creates more value as it's held for years, not just weeks or months."

It has already been a wild ride for crypto markets this year following the decision by the SEC to approve Bitcoin ETFs in January. In addition, more than $10 billion in institutional investment has flowed through the digital currency market.

Magnet Capital co-founder Benjamin Celermajer said halving events have historically preceded significant bull runs in the Bitcoin market.

"For instance, in the year following the 2012 and 2016 halvings, Bitcoin experienced substantial price increases of 284% and 559% respectively," Celermajer said.

"To compound this pattern of price appreciation, we also are experiencing a year where market demand dynamics have been bolstered by huge inflows of institutional support."

As at the time of writing, the price of Bitcoin is sitting at around $101,000, having risen 6.15% over the past five days.