Why Is Halving Happening, and How Does It Affect the Market?
When the reward for mining is reduced, fewer new BTCs come into circulation. This helps manage inflation, limits the overall supply of coins, and supports their price. Possible consequences of halving:
- An increase in the value of Bitcoin: the reason is growing investor interest and a decrease in the supply of coins.
- Increased volatility: the market responds to changes in the supply and demand situation.
- Decrease in the number of miners: some players may go out of business due to increased competition and lower profits.
- The rise in the price of altcoins: Bitcoin’s rise affects the crypto market as a whole and often entails an increase in the value of other coins.
History of Previous Bitcoin Halvings
The first halving of the reward for confirming new blocks took place in November 2012, when BTC was worth $12. After 150 days, the rate soared to $135, and a year later, the coin was already trading at $964.
The second halving was registered in July 2016. The rate at the start was $663, after 5 months, it grew to $759, and a year later, Bitcoin was already at $2,550.
The third halving happened in May 2020, when Bitcoin was worth $8,599. Within the first 150 days, its price rose to $10,669, and a year later, it was at $55,847.
As for the halving of Bitcoin 2024, the date of this event is already known. The award halving took place on April 20, when the cryptocurrency’s exchange rate was at $64,220.
In total, the algorithm of the first cryptocurrency provides for 33 halvings, at the end of which miners will earn less than 1 satoshi per block.
When Is the Next Bitcoin Halving Scheduled?
Earnings of miners will decrease again after they add 210,000 new blocks. Experts have determined that the next Bitcoin halving will happen in 2028. The reward amount will decrease to 1.5625 BTC.
How Will the Halving Affect the Bitcoin Price in 2024?
Most experts are confident that the rate of the first cryptocurrency will grow. It is assumed that already in the fourth quarter, the price can update the historical maximum. Previously, we wrote that according to the forecasts of American analyst Willy Woo, BTC rate can reach $1 million by 2035.
When the halving of Bitcoin-2024 occurred, the coin reacted to the changes calmly. On the first day, only transaction fees increased, but their values soon stabilized.
Miners are trying to compensate for the decrease in rewards by increasing the price of coins. If this does not happen the day before and after the halving, many miners suspend their work. The most powerful enterprises that have a sufficient “financial cushion,” economical equipment, and access to cheap electricity stay in the game. According to experts, it will not be easy to maintain profitability from BTC mining in the coming months.
Strategies for Earning from Bitcoin Halving in 2024
Let’s understand how you can earn using Bitcoin 2024 halving, what these methods are, and how they work:
- Long-term investments: The BTC rate rises after halving, which means you can seize the moment and buy coins at the current price and then sell them when the rate reaches new peaks.
- Short-term trading: Traders can capitalize on price volatility by predicting the cheapening and appreciation of cryptocurrency.
When investing in digital assets, you must consider the risks. Don’t invest in buying Bitcoin with money you can’t afford to lose. Fundamental and technical market analysis will help you come up with the right strategy.
