Logically, the price has to increase with the halving right?
Halving basically reduces the reward to the miners. If miners are rewarded less then there can be reduction of miners due to maintanince cost and other reasons which in-turn may increase the congestion.
Also, the price increases as the supply is less and demand is more. Halving by halving the supply reduces and demand increases thus, the price hash to increase.
Those are common misunderstandings.
The number of miners does not affect the backlog of transactions because the difficulty self-adjusts every two weeks.
Halving does not halve the
supply. It halves the
production. The
supply of bitcoins continues to rise as the total number of bitcoins approaches 21 million.
"Reduce in supply" by this I meant the number of
coins that are getting mined will be reduced. Halving is the process of 1/2 the Coins that are mined right? Or you can say that it is reduction of reward by 50%. Which indirectly means the number coins Coinbase transaction reduces exactly by half. This is why I refereed supply reduces.
I did not get you. I did not understand how that does not effect. Demand and supply balance always affects the market right? Please explain. Now I am confused.