Bitcoin Halving 2024: What to Expect (Estimated In April)

The Bitcoin halving event is about to happen again after a gap of four years possibly in April 2024.

Bitcoin is the one that started the whole craze of cryptocurrency, that is one of the reasons why it is still the market leader by capitalization.

In this blog, we will take a closer look at the Bitcoin halving event and provide all the necessary information that one needs to know.

What is Bitcoin Halving?

Bitcoin halving is a pre-programmed feature of the Bitcoin network that occurs every four years.

This halving event acts as a speed-breaker on the supply of Bitcoin and significantly reduces the number of them entering circulation.

Breakdown of the halving event:

• Rewards Reduction: Generally, miners get Bitcoins as a reward for verifying their transactions on the network, but during the halving event, this reward will get reduce by half.
• Scarcity Economics: The maximum amount of Bitcoin is stands at 21 Million, and halving it reduces it to half. When any commodity is scarce, its value tends to increase, which is the ultimate aim of this bitcoin halving.

Why does this Matter?

The importance of Bitcoin halving resides in its potential growth in the long run.

If the halving events continue to drive the demand and valuation of Bitcoin, then its position will be secure in the future.

Let’s take a look at the impact of the Bitcoin halving event on a global scale.

Global Impact of the Bitcoin Halving Event

• • Potential Price Surge: Previously halving events are followed by a price surge within a year, but correlation doesn’t mean causation because other factors also play a role.
  • Mining Difficulty: After halving, miners receive only half of the reward for verifying transactions. This forces miners to invest in more powerful machines to cover up their losses, creating an increase in mining difficulty.
  • Hashrate Reduction: The hash rate, which represents the combined computational capacity of the Bitcoin network, tends to decrease after halving as miners with weaker tools bail out because of lower or no profit at all.
  • Ignite Interest: The event draws a lot of media and social media hype that could potentially attract new investors and boost the adoption rate of cryptocurrencies.
  • Regulatory Affairs: This event could put Bitcoin in the spotlight in the eyes of various governments and regulatory bodies, which could finally make cryptocurrencies a regulated sector.

Historical Record of the Bitcoin Halving Event

There have been 3 instances of Bitcoin halving events since 2012:

2012: First Halving

• • • Date: November 28 2012
  • • Pre-Halve Price: $12
  • • Post-Halve Effect: The price saw only a minor increase for the first year, but thereafter, the price surged in late 2013 by reaching over $1000. This was the first major increase following a halving event.

2016: Second Halving

• • • Date: 9th July 2016
  • • Pre-Halve Price: $650
  • • Post-Halve Effect: Similar story, where prices kept rising slowly in 2016 and rose sharply 1 year later in 2017 by reaching $20,000. This proved that there is some relationship between halving events and price increases.

2020: Third Halving

• • • Date: 11th May 2020
  • • Pre-Halve Price: $8000
  • • Post-Halve Effect: The third Bitcoin halving event coincided with the global pandemic, creating a unique market condition. Bitcoin still managed to keep on gaining valuation throughout 2020 and the majority of 2021 when it reached $68,000+ in November.

Why Does Bitcoin Halving Don’t Have a Fixed Date?

Although the Bitcoin halving event occurs roughly every four years, it doesn’t have a fixed date or month. Let’s know why it happens:

• • • Mining Time: New blocks are added to the Bitcoin network with an average time of 10 minutes. However, there can be fluctuations in the time depending on the network and other factors.
    • Block Height: The halving event is not based on date but on the height of the block. This block height is already established in the Bitcoin code (around 210,000 blocks for each halving event).
    • Date Estimates: Since the timing of mining isn’t fixed, it becomes nearly impossible to pinpoint the exact date for when the next block height will be reached.

In short, the halving events are fixed (occurring every 210,000), and the date range depends on average block time.

How to Prepare for the Bitcoin Halving Event?

Highlighting some ways that investors can prepare themselves for the upcoming halving event.

Research (DIY)

• • • Understanding Halving: Getting the concept of halving is very important for investors as this is a big event that does affect prices at some level.
  • • Market Analysis: Research the economic condition, market situation, and factors that can influence the prices of Bitcoin other than the halving event.

Investment Strategy

• • • Planning: Determine the investment strategy, risk tolerance, and timeline of events; don’t just go for the hype of halving events.
  • • Diversification: This strategy always comes in handy in investments, so consider expanding the portfolio beyond Bitcoin to mitigate the risks.

Information

• • • Reputable Sources: Remain up to date with news and in-depth analysis factors provided by many crypto news aggregator apps.
    • FOMO: Fear of missing out is the driving force behind many instances of people losing money; don’t let the hype and speculation cover your judgment.

Aftermath Predictions of the Bitcoin Halving Event

Numerous predictions are coming from various sources, and one thing is common: they are predicting a bullish run for Bitcoin in the coming years.

• • • Bitquant: This is a financial analysis platform that is predicting a bullish run for Bitcoin. They anticipated that Bitcoin would reach an all-time high just before the halving event, which came true, and now they are predicting that it will reach $250,000 after the event.
    • Standard Chartered: British multinational banking predicted that Bitcoin would reach the $100,000 milestone by the end of 2024, and partial credits for this are given to the halving event.
    • Bernstein Research: This research firm has a more moderate prediction, saying that Bitcoin could reach $80,000 by the end of 2024 and $100,000 by the end of 2025.

Wrapping Up

How much the Bitcoin halving 2024 event proves to be fruitful for Bitcoin and the whole crypto industry remains to be seen.

It is important to note that halving events doesn’t always guarantee profits because there are numerous other factors that play a role.

Always proceed with caution and knowledge when it comes to investing your hard-earned money.

Frequently Asked Questions

Q1: What is Bitcoin halving?

Bitcoin halving is a process where the rewards for mining new blocks are halved, reducing the rate at which new bitcoins are created. This occurs approximately every four years to control inflation and ensure the limited supply of 21 million bitcoins remains scarce.

Q2: When is the next Bitcoin halving?

The next Bitcoin halving most likely to occur in April 2024, according to the average block time of 10 minutes on the Bitcoin network. This will further reduce the rewards for miners and potentially impact the price of bitcoin due to decreased supply.

Q3: How does Bitcoin halving affect the price?

Bitcoin halving is often associated with an increase in the price of bitcoin, as the reduced supply of new coins entering circulation can create scarcity and drive up demand. Investors and traders watch this event closely for potential price movements.

Q4: Why is Bitcoin halving important?

Bitcoin halving is important as it helps maintain the integrity and value of the cryptocurrency by controlling inflation and ensuring a limited supply. This mechanism is built into the protocol to incentivize mining and protect against devaluation through excessive supply.

Q5: What happens to miners after halving?

After bitcoin halving, miners receive half the amount of rewards for mining new blocks. This can impact their profitability, especially for those operating with high energy costs. Some miners may need to upgrade their equipment or explore other revenue sources to remain competitive in the market.