2024 has been off to a wild start with the approval of spot Bitcoin ETFs in January and recent bullish spikes in February and March. Next up on the list is an expected Bitcoin halving in the coming month, and this milestone will shake things up even more.
Let’s talk about the Bitcoin halving.
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). Currently, the reward is 6.25 Bitcoins per block mined, but that’s expected to fall to 3.125 when the halving comes around.
April 19th Will be the Halving? Expectations?
First, let’s talk about the date.
The halving is said to be set for April 19th, 2024, which is just a little over a month away. This date isn’t one that’s completely penciled in just yet, as the exact date continues to shift. This is due to the fact that the halving will occur when a certain block is mined, and all we can do is predict the date based on how fast blocks are being mined (Current predictions landing between April 15th and 20th).
The lowered supply and increased scarcity are most likely going to increase prices in the long term, as Bitcoin has been growing as an asset. For the short term, we might see smaller spikes, but generally speaking, the larger spikes that accompany halvings will probably occur later.
The last halving occurred in May 2020, and the market didn’t see any significant increases until roughly half a year later when Bitcoin started the bull run. Even before that, the halving in July 2016 didn’t see major spikes until a year later towards the end of 2017. If we were to follow these precedences, we expect more steep spikes to occur towards the tail end of 2024 or even later in 2025.
One thing to note, however, is that these are the expectations derived from the last two halvings. The first halving in 2012 did not see any major price shifts, and data from only two precedents can be shaky foundations to build upon. What we can expect, however, is for the crypto world to be shaken up regardless of whether we are looking to rocket to even higher heights or face the steepest correction we’ve seen yet.
The Bitcoin halving is coming, and we should all brace ourselves for its rollercoaster ride.
Why is the Halving Significant?
What makes the halving such a monumental occurrence?
Halving the mining reward will have an incredible influence on not only market trends, but also general investment from investors and miners. Miners will have to re-evaluate the viability of continuing their mining operations while investors will be micro-managing their strategies and portfolio from the supply shifts that will occur.
Another reason why the halving is especially significant this time is due to recent approvals of spot BTC ETFs. The approvals have made it so Bitcoin is getting more and more recognition and acceptance from traditional markets, steadily increasing its demand; a demand that is outpacing supply. With a halving on the horizons, the demand and supply gap will only grow larger, and the expectation is that this gap will lead to major market shifts.
When faced with recent bullish trends, this major Bitcoin milestone is for sure going to bring waves.
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?
With ETH Taipei behind us, expect an article on the fireside that we hosted at the event! We will also continue eyeing all the interesting development in the Web3 World as we blast past Q1 of 2024.
Disclaimer
Information offered in this article are not and should not be treated as financial or business advice. Please proceed with any financial actions at your own risk.
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