Bitcoin Halving
Bitcoin Halving
The last Bitcoin Halving took place on April 20th, 2024. Find out everything you need to know about this important crypto event that happens every four years.
Expected Halving Date: November 1, 2028
What is Bitcoin Halving?
Every 10 minutes, a block in the Bitcoin network is verified and added to the previous block. For verifying the block, this process is also known as mining, the miner receives a reward. Between 2020 and 2023, this reward was 6.25 BTC.
Every 210,000 blocks (approximately 1,450 days ≈ 4 years), this reward is halved. This reduction is called “Halving.” By the end of April, the 840,000th block will be reached, marking the fourth Halving. From then on, miners will receive only 3.125 BTC per confirmed block for the next 210,000 blocks.
The History of Bitcoin Halving
When the Bitcoin network started in 2009, miners received 50 BTC per block. This amount has halved every four years, leading us to 3.125 BTC as the reward per block in April 2024. In 2028, this amount will decrease again to 1.5625 BTC. There will be a total of 33 Bitcoin Halvings, with the last Halving expected to occur in 2140.
How Does the Halving Affect Bitcoin’s Price Trend?
History has shown that Halvings have a strong correlation with Bitcoin’s price and a significant impact on market dynamics. The first Halving took place on November 28, 2012, when the reward decreased from 50 BTC to 25 BTC. At that time, the Bitcoin price was about 12 USD and rose to 127 USD within 150 days. A similar trend occurred during the Halvings in July 2016 and May 2020.
While predictions about the future price of Bitcoin are just speculation, many investors and market observers are betting on a significant impact of the Halving on the crypto market. Based on historical dynamics, a scarcity of supply with steady or increasing demand this year is expected to drive up the price of Bitcoin. The decrease in miner rewards will slow the rate at which new Bitcoins are produced. This, with steady or rising demand, could result in a scarcity of supply and push the price up.
How Bitcoin’s Price Has Developed After Previous Halvings
What Experts Say About the Bitcoin Halving
Our crypto experts, Richy from Boerse Stuttgart Group and Mirco from Bitcoin2Go, discuss the impending impact of the Bitcoin Halving on price trends.
Bitcoin Halving 2024: What's Different?
Bitcoin Gains Increasing Recognition
The rapid development of AI tools like ChatGPT, Midjourney, and others within just a year highlights how much can change in the crypto world over four years. Unlike the slower-paced traditional financial sector, the crypto industry is marked by monthly advancements and innovations. In the past four years, well-known cryptocurrencies such as Bitcoin and Ethereum have optimized and expanded their code. Additionally, new cryptocurrencies have entered the market, establishing themselves with significant market capitalization.
Institutional Participants and Regulation
With the EU’s MiCAR regulation, short for Markets in Crypto-Assets Regulation, cryptocurrency regulation has become standardized across Europe. This stricter regulatory framework provides greater certainty for institutional participants looking to engage with the crypto and blockchain space. Consequently, this has sparked heightened interest from banks and investment firms, altering the initial landscape.
Bitcoin ETFs in the USA tradeable
Market developments over the last two years are set to influence the Bitcoin Halving. Some investors have become cautious after the rally of the last two years. Others, buoyed by the recent months and the SEC’s approval of the Bitcoin ETF in the USA, are optimistic and have high hopes for the 2024 Bitcoin Halving. The significant inflows witnessed since the year’s start, amounting to 390 million USD by March 14, signify the market’s positive response to this approval.
Global Rise in Inflation and Interest Rates
In 2020, investors found themselves in a futile search for interest rates amidst inflation rates of 0.7% in the EU and 1.23% in the USA. Fast forward to 2024, and investors are experiencing higher interest rates, albeit alongside a higher inflation rate of 6.4%. On March 7, the European Central Bank decided to keep the prime rate steady. Since September 20, 2023, the ECB has maintained the Eurozone interest rate at 4.5%, a level not seen since the early 2000s. This shift has placed investors in an entirely new market environment.
