SUMMARY
With the next Bitcoin halving event around the corner, which is about to happen in April 2024, the crypto market is gaining traction. Bitcoin halving, which happens around every four years, is more than about Bitcoin, as it stirs the entire crypto market space.
Investors speculate on the market dynamics during the halving event and try to leverage the event to their advantage. Many investors tend to buy Bitcoins and use them as a hedge against inflation during the halving event.
Now, let’s see what to expect in the upcoming Bitcoin halving 2024.
The Bitcoin halving event has always been significant as it impacts the entire crypto space. Not only did Bitcoin prices surge after the past halving events, but also the altcoin prices. The logic behind the market speculation surrounding the halving event is the Bitcoin scarcity and its impact on the crypto space.
Simply put, since Bitcoin rewards are reduced after Bitcoin halves, impacting the new Bitcoin supply in the market, it increases demand. The gap between the supply and demand, in turn, increases Bitcoin’s price. Conversely, it increases the altcoin’s price as well, and many investors opt for altcoins like Ethereum Classic, Dogecoin, etc, due to higher Bitcoin prices.
Currently, the block reward for Bitcoin mining is 6.25 BTC. It will be reduced to 3.125 BTC in the upcoming Bitcoin halving event in April 2024. Miners may need to fine-tune their mining operations to maintain their mining profitability. That, in turn, may demand the need for advanced, robust, and energy-efficient mining hardware.
So, with all eyes on Bitcoin halving in 2024, investors and miners should wait and watch. Experts highly recommend making crucial financial decisions with proper research rather than falling for assumptions to avoid potential losses.
The next Bitcoin halving event is expected to happen in early 2024, probably in April. However, no one can predict the exact date since it relies on the block height. Hence, experts say it is safe to assume that Bitcoin halving happens every 210,000 blocks. The next Bitcoin halving is expected to happen once the block height reaches 840,000, which will be around in April 2024.
The chart below illustrates the past Bitcoin halving events. The chart clearly shows that Bitcoin prices are higher after the halving event.
Source: Coincodex
The year 2023 has been really good for all cryptocurrencies, especially Bitcoin, unlike the year 2022. With the Bitcoin halving date nearing, Bitcoin stands at $48,002.90 as of February 12th, 2024. That indicates a positive sign and crypto enthusiasts expect a good price rise for Bitcoins. The possibility of Bitcoin price reaching up to $50,000 is more likely.
Forbes says that Bitcoin’s price history indicates that the prices have always risen after the halving events in the past from 2012, 2016 to 2020 halvings. Thus, it is expected that Bitcoin price will significantly increase in the coming months after the halving event.
Bitcoin halving is a significant event that draws attention to the entire cryptocurrency market more than just Bitcoins. For instance, investors and crypto enthusiasts often become more interested in the crypto market due to the sudden price hikes of cryptocurrencies.
Simply put, many crypto enthusiasts prefer altcoins due to the reduced Bitcoin mining rewards. Moreover, investors opt for altcoins since Bitcoin prices become unaffordable for them. Conversely, a few miners choose to mine altcoins that give more rewards.
Some crypto experts say that the Bitcoin price will increase, while others argue that the prices may drop. With so much speculation around, it is easy for investors to get confused. Thus, analyzing the past Bitcoin halving trends will give you a clear picture.
Here are the Bitcoin halving events that happened in the past and Bitcoin’s prices before and after the event.
As the table depicts, Bitcoin’s price before the halving event is less when compared to the price during the event. Thus, it is quite optimistic to acquire some Bitcoins before the halving event as prices tend to increase after the halving event.
However, as market trends change and there have been only three halving events so far, one cannot completely rely on these halving events. Investors should do their research and study the market thoroughly before making any decisions.
First, let’s understand the logic behind Bitcoin halving and its impact on Bitcoin’s price. Since the mining rewards are reduced during the Bitcoin halving, the Bitcoin price increases due to the limited supply of Bitcoins. The demand for Bitcoins often tends to increase due to the limited supply, increasing its prices further. In short, the gap between the demand and supply leads to Bitcoin price hikes after the halving event.
Now, let’s analyze the previous Bitcoin halving events to better understand when the Bitcoin price reached its peak. According to Coinmarketcap, the Bitcoin price peak has occurred around 18 months after the Bitcoin halving every time. Since only three Bitcoin halvings have occurred so far and many other intricate factors play a role in Bitcoin’s price, investors should not mindlessly follow previous halving data. Experts suggest investors study the market before making any crypto investments.
There has always been speculation and anticipation among crypto enthusiasts regarding the Bitcoin halving events. They constantly analyze halving events and predict possible Bitcoin prices during and after them.
Most often, the reduced Bitcoin rewards and limited supply only increased Bitcoin demand, thereby increasing its price. However, there has been a temporary drop in Bitcoin price at times. Thus, it is tedious to predict the actual impact of halving events on Bitcoin’s price as it is complex. For instance, it depends on factors like market sentiment, economic conditions, investment behavior, regulatory affairs, etc.
Though the cryptocurrency market was highly volatile during the Bitcoin halving events, price hikes or drops are not guaranteed. Thus, investors and miners should study the historical data and market trends to understand the behavior of Bitcoin’s price during the halving events. However, there are no guaranteed results. Hence, investors should research, consider related aspects, and seek experts’ advice before making investment decisions.
That’s a million-dollar question. Let’s see what the experts have to say. Many crypto experts and executives attended the Binance Blockchain Week in Istanbul in November 2023. Crypto Potato interviewed many experts, and attendees graced the event for their views on Bitcoin halving bullish or bearish.
Richard Teng, head of regional markets at Binance, said launching a spot BTC ETF in the US and the upcoming Bitcoin halving event would trigger a bull market for the crypto assets in 2024. Eowyn Chen, the CEO of Trust Wallet, also agreed that launching a spot of BTC ETF and the Bitcoin halving would cause a price hike of digital assets next year. However, Chen added that it cannot be a super high bull market but will be good enough.
Sun Kyum from the blockchain protocol Contentos attended the event and is quite optimistic about next year. Esra Kahraman, the marketing manager of BTCHaber, asked investors to be cautious and wait a bit longer to witness the Bitcoin bull market.
Thus, the crypto market and Bitcoin halving event in 2024 seems positive. However, one should wait and watch.
It is not straightforward to predict the best time to buy Bitcoin since it relies on various factors like your risk tolerance, market trends, investment portfolio, etc. However, if we analyze the previous halving events, the prices tend to increase 18 months after the halving event. Thus, many market observers recommend buying Bitcoins six months before the halving event. However, past history and trends don’t predict the future. Hence, investors should play safe and take calculated risks.
There will be 32 Bitcoin halvings. With around three halvings done, there are 29 more halvings left to go.
Bitcoin has a capped supply of 21 million BTC, with 19.22 million already in circulation. Once the entire 21 million BTC are mined, miners will no longer receive block rewards, relying solely on transaction fees. As of the upcoming Bitcoin halving in 2024, approximately 93.7% of the total Bitcoin supply will have been mined.
With each halving, Bitcoin’s inflation rate is reduced substantially. The chart below illustrates how the Bitcoin supply (orange) and annualized inflation rate (blue) will trend based on the Bitcoin protocol.
CONCLUSION
Overall, Bitcoin halving in 2024 seems to be optimistic, as per many industry experts and leaders. However, the experts warn investors that past trends don’t determine future profits. Thus, individuals should conduct thorough research and analyze price movements before making any investment decisions. Talk to financial experts if needed to better understand the context of Bitcoin halving and its impact on crypto investments.
The motive behind Bitcoin halving is to limit the supply of Bitcoins. Limited supply and increased demand will make Bitcoin inflation-proof, unlike fiat currencies.
Do your research, follow market trends, assess risks, and consider crypto volatility before investing. It is also highly recommended to take expert advice before considering crypto assets.
Bitcoin halving is a crucial event in the crypto space. It attracts immense market attention. For instance, many investors consider investing in other cryptocurrencies due to Bitcoin’s price hike. Some prefer altcoins due to decreased Bitcoin rewards. Thus, Bitcoin’s halving significantly impacts the price of altcoins as well.
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