Bitcoin hovered around $63,000 when the halving happened and has seen a small rise to $66,000 at the time of writing. Previously, we touched on the Bitcoin halving before it happened, and now that the halving is done, what’s next?
As we observe the landscape after this historic event, let’s take a look at what happened as well as the expectations we may have for Bitcoin and crypto.
What is the Bitcoin Halving
Bitcoin halving is a process where the mining reward is cut in half. The purpose behind the halving is to reduce the influx of coins entering the network, serving as a way to maintain value. The process is written so that the halving will occur every 210,000 blocks mined (Around every 4 years).
The halving is a significant milestone for the Web3 space because it often brings about major shifts that affect not only Bitcoin but all the other cryptocurrencies. With the block reward dropping to 3.125 Bitcoins per block, miners and investors alike will undoubtedly have to reevaluate their position.
What Happened?
The halving occurred on April 20th, 2024 when Viabtc mined the 840,000th block. Following the halving, prices held out at around the $63,000 to $64,000 mark, and market volume pumped to over $50 billion. Many expected a steeper price drop, but Bitcoin was ultimately able to hold out for a while.
With the halving behind us, it’s vital to examine what’s happened in the past couple of weeks as well as what we might expect in the coming months.
What are the Post-Halving Expectations?
The obvious expectation or question here is whether we will enter a new bull run (Or continue the current one depending on your stance).
Looking at Past Halvings
Judging from past halvings, one would assume that the halving this time will lead to Bitcoin reaching record prices, which will then lead to a market boom. The first halving ballooned Bitcoin price from $11 to $1,100, the second halving from around $600 to $20,000, and the third one sending it close to $70,000. Can the same be expected where prices soar well above $100,000?
How About the Halving This Time?
One thing we have to take into consideration this time around is the fact that we’ve already hit a new all-time high (ATH) just before the halving. This is largely due to all the attention and traffic that the approval of the spot Bitcoin ETFs brought. What this means is that we are sailing into unfamiliar waters as precedents become less reliable references. There are certain indications, however, that the market will continue to rise.
One indication that we have observed is the rising prominence of Bitcoin (BTC) Layer 2s. At our recent fireside, one of the experts talked about how industry veterans are all looking into BTC L2s as that’s where they think the next big wave will start. Currently, BTC Layer 2s have grown by 20% in the past week and have broken the $4.5 Billion market cap. If the momentum is starting to gather for BTC L2s, we can expect that this extra attention will drive Bitcoin to rise higher, mirroring past halving performances.
Another indication that the market is still prime for a spike is the fact that altcoin prices have not risen much. Usually, Bitcoin reaching a new ATH would lead to altcoins following the same trajectory, but that hasn’t happened yet. It’s the belief of many veterans in the landscape that it’s only a matter of time before altcoins start rocketing and driving the market up again.
While the Bitcoin halving this time might be a little different compared to previous halvings, it’s expected by many that we will still see prices soar. At the time of writing, Bitcoin price is still growing (By over $3,000 in just three days), and hopefully, we will see that trend continue.
A rising wave lifts all boats, so let’s ride this Bitcoin wave to the top!
About ThunderCore
ThunderCore is an EVM-compatible blockchain featuring a breakthrough consensus protocol, PaLa, allowing lightning-fast efficiency. With users in more than 100 countries, this blockchain emphasizes a growing global reach. ThunderCore offers a native currency, TT, and nurtures an innovative ecosystem within the TT Wallet mobile app.
What’s Next
As we continue riding the wave after the halving, ThunderCore Blog will pay extra attention to all the newest developments in this sphere. We will continue looking at the hottest topic with Thunder Buzz, introduce informational content with Thunder Academy, and dive deep into interesting topics with Thunder Dive. Until next time, Thunders!
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