Every four years, Bitcoin mining rewards are halved (tiBitcoin halving 2024), which reduces the amount of new bitcoins entering the market. The next halving is expected to be in April 2024. While previous halvings often led to dramatic price spikes, the situation appears to be different this time around, largely due to new market drivers such as Bitcoin ETFs.
Bitcoin halving (Bitcoin halving 2024) is approaching and brings with it a multitude of questions and expectations. This event, which occurs every four years, is a technical mechanism built into Bitcoin's code and has a major impact on the amount of Bitcoin entering the market. As a watershed moment that creates greater rarity, halvings have often heralded significant price increases in the past.
How does halving work? Halving is a process in which the reward for mining a new bitcoin is cut in half. This happens after every 210,000 blocks added to the Bitcoin blockchain, which usually takes about four years. Currently, miners receive 6.25 bitcoins for each new block, but this figure will drop to 3,125 bitcoins per block after the April 2024 halving.
Photo: envato elementsHistorical impact on market prices: As CNBC Tech reports, previous halvings have led to significant price gains:
- After halving in 2012 Bitcoin price rose from $12.35 to $127 in five months.
- After halving in 2016 the price doubled to $1,280 in eight months.
- After halving in 2020 Bitcoin price rose from $8,700 to $60,000 between May 2020 and March 2021.
When exactly will the halving happen - Bitcoin halving 2024
The estimated date and time of the next Bitcoin halving is April 20, 2024 at 03:25 Coordinated Universal Time (UTC). Here's how that time matches up with different time zones around the world:
- Eastern Standard Time (EST): April 19, 2024, 11:25 p.m
- Pacific Standard Time (PST): April 19, 2024, 8:25 p.m
- Central European Time (CET): 20 April 2024, 05:25
- Indian Standard Time (IST): 20 Apr 2024 08:55
- China Standard Time (CST): April 20, 2024, 11:25 AM
- Japan Standard Time (JST): April 20, 2024, 12:25 p.m
- Australian Eastern Standard Time (AEST): 20 April 2024 13:25
What's different this time? This time the halving is different, as Bitcoin had already reached a new record high before the event itself, in part due to the approval of Bitcoin ETFs, which attracted new demand to the market. Analysts such as VanEck's Matthew Sigel predict that due to the pre-buying of Bitcoin in anticipation of the halving, no dramatic price movements are expected on the day of the event.
Photo: envato elementsImpact on the mining industry: According to Adam Sullivan, CEO of Core Scientific, the halving will have a major impact on the mining industry as the rewards for mining new transactions will decrease, making some smaller operations unprofitable. This may lead to consolidation in the industry, where larger operations are likely to take over smaller ones.
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With the current high volatility in the market bringing downward price swings, attractive buying opportunities are opening up for investors ahead of the upcoming Bitcoin halving. Although we are currently seeing reduced buying interest, this may allow investors to acquire Bitcoin at lower prices before it is expected to rise. This strategy requires persistence and good timing, as after the price falls to around EUR 50,000, rapid and steep growth is expected to occur. Understanding market dynamics and acting on time can provide investors with tremendous profit opportunities in the weeks following the halving.
Bottom line: While the halving represents the potential to increase the price of Bitcoin due to a reduction in supply, the impact of this event may already be partially realized due to the recent enthusiasm for ETFs. Investors and interested observers will need to closely monitor market conditions and risk management strategies in the coming months as Bitcoin and the broader crypto market continue to evolve in an unpredictable global environment.
This dynamic and changing nature of Bitcoin needs to be considered in all investment decisions, especially during times of key technical and economic shifts such as the halving.
