When is Bitcoin Halving Event, and What Should We Expect From It?

by | May 29, 2024 | Entrepreneurship

Bitcoin halving is a critical event in the cryptocurrency sector that influences Bitcoin’s issuance rate and market dynamics. This mechanism is embedded within Bitcoin’s protocol, ensuring the digital currency’s scarcity and, theoretically, its value over time.

The Bitcoin halving countdown engages the community long before the event itself, marking a period of heightened speculation and analysis. This countdown is not just a timer but a signal to the market of impending changes in the supply dynamics of Bitcoin.

When is the Next Bitcoin Having?

Bitcoin halving occurs approximately every four years after every 210,000 blocks have been mined. This event halves the reward that miners receive for adding new blocks to the blockchain. It’s a deliberate mechanism to control Bitcoin’s inflation by slowing down the introduction of new coins into circulation.

The next halving is scheduled to occur around 2028, following the 2024 halving. This event will continue to follow the Bitcoin halving pattern, reducing the block reward further and impacting miners’ rewards.

How Could BTC 2024 Halving Affect the Market?

The most recent halving in mid-April 2024 saw the block reward drop from 6.25 to 3.125 bitcoins per block. This reduction has several implications:

  • Supply shock. With fewer new bitcoins being created, any stable or increasing demand could lead to a supply shock, potentially pushing prices upward.
  • Mining profitability. The immediate effect on miners is reduced profitability, prompting efficiency improvements or exit from the market for those unable to sustain operations.
  • Market sentiment. Historically, halvings have led to bullish market sentiments as traders anticipate price increases due to the reduced supply rate.

Previous halvings have shown a pattern of influencing Bitcoin’s price and the broader crypto market:

  • First halving (2012). The block reward was reduced from 50 to 25 bitcoins. This event coincided with a significant price increase from around $12 to over $1,000 within a year.
  • Second halving (2016). The reward dropped from 25 to 12.5 bitcoins, leading to a gradual price increase that culminated in reaching $19,700 in December 2017.
  • Third halving (2020). The reward halved from 12.5 to 6.25 bitcoins, with the price marking its new all-time high of $69,000 in April 2021.

Bitcoin halvings play a fundamental role in the cryptocurrency’s economic model, directly affecting the supply and, indirectly, the market price. Each upcoming Bitcoin halving is a critical moment for the network and its participants, driving the development of Bitcoin as a digital asset.