Bitcoin halving in 2024 is just 30 days away: what you must know

Unlike previous halving events, where Bitcoin usually reaches new highs before the halving event arrives, this time the crypto asset has already hit new highs earlier this month.

As March draws to a close, the countdown to the most anticipated event in the crypto industry – the 2024 Bitcoin halving – has begun. Analysts estimate that the Bitcoin network could undergo its next halving event between April 19 and 20 of this year, 30 days from today.

This event is expected to have a significant impact on the overall digital asset market and the price trajectory of Bitcoin (BTC). However, here’s what you need to know about it.Bitcoin Miner

What is BTC Halving?

Bitcoin halving is a pre-programmed event scheduled to occur every four years or every 210,000 blocks mined on the Layer 1 blockchain.

This year, the upcoming halving will occur at a block height of 840,000.

During the halving period, the rewards for Bitcoin miners for verifying transactions and protecting the network will be halved.

This reduction in mining incentives is intended to control the amount of newly issued BTC in circulation while ensuring that the total supply of bitcoins remains at a pre-determined cap of 21 million.

The first halving occurred on November 28, 2012, four years after the protocol’s January 2009 launch. At that time, the block reward for miners was reduced from 50 BTC to 25 BTC per block.Kaspa Miner

So far, the network has experienced four halving, including the one coming next month. During the event, miners will receive a reward of 3.125 BTC per block, compared to 6.25 BTC in 2020.

Historical Impact of Halving on Bitcoin Price

Historically, the Bitcoin halving event has had a significant impact on the BTC price.

In the months leading up to a halving, there is an increase in speculation and anticipation in the market, which can push up the price of Bitcoin. After a halving occurs, there is usually a period of price consolidation followed by a bull run that usually drives the Bitcoin price to new highs (ATH).

For example, after the last halving in 2020, the bull market of 2021 witnessed the BTC price approaching $70,000 with a market capitalization of $1 trillion.

The industry’s second largest digital asset, ethereum (ether), hit an all-time high of $4,379. Other alternative cryptocurrencies (torrents) are also gaining popularity, including Meme Coin. The total value of the entire crypto industry exceeded $3 trillion for the first time in the history of emerging markets.

This move attracted many new crypto enthusiasts into the industry, leading to the mass adoption of BTC. Countries like El Salvador even made crypto assets legal tender in September 2021, becoming the first to do so.

In the same year, Elon Musk joined the cryptocurrency bandwagon, adopting Dogcoin (DOGE). Similarly, interest in the non-homogenized token (NFT) space skyrocketed in 2021 when an artist named Beeple, Mike Winkelmann, transformed his artwork into an NFT. The digital artwork, titled “Everydays: The First 5000 Days,” sold for $69 million.

Expectations of Bitcoin Halving in the Upcoming Year 2024

However, the upcoming event may differ from past cycles. Unlike previous halving events, where Bitcoin usually reaches a new high before the halving event, this time the crypto-asset has already hit a new high earlier this month.

Bitcoin surpassed its previous high of $69,000 last week to reach over $73,000, deviating from the typical pattern seen in previous halving cycles.

This early price spike is attributed to a variety of factors, including increased institutional adoption, macroeconomic conditions, and Bitcoin’s growing mainstream acceptance.

Additionally, new approvals of Bitcoin spot ETFs in the market have contributed to the spike in Bitcoin prices.

As a result of this new trend, analysts are warning investors to be careful as there is no clear pattern as to how Bitcoin will react following the halving event, especially given the significant difference in market conditions compared to previous halving.

Earlier this week, analysts at Rekt Capital said that Bitcoin is approaching a critical stage known as the “danger zone. Market experts claimed that Bitcoin was known to pull back at this stage days before the halving took place.

The analysts said, “Historically, Bitcoin has been known to make a pre-halving retracement 14-28 days prior to a halving.”