„This time around, I think miners are better prepared,” Dessislava Aubert, Director of Research at the crypto analytics firm Kaiko, argued. Aubert suggested that miners have been building liquidity ahead of the halving, and that the sector has „consolidated significantly over the past year.” At the time of the June 2016 halving, the price of Bitcoin was around $660; following the halving, Bitcoin continued to trade horizontally until the end of the month, before falling as low as $533 in August.

Should You Invest in Bitcoin During a Halving?

Though scarcity could spike bitcoin’s price, a decrease in mining activity may reduce it. The focus should be on the overall network growth rather than the timing of halving events. Investors should also consider global economic factors, such as inflation rates and financial crises, as these could indirectly affect bitcoin’s value. The Bitcoin halving refers to an event that takes place about every four years and reduces the block reward by 50%.

What Time Is Bitcoin Halving 2024?

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Some miners may find it is no longer profitable to continue operations. This can lead to a decrease in the overall Bitcoin network hash rate as less efficient miners shut down their machines. Every 210,000 blocks mined, or roughly every four years, the reward given to Bitcoin miners for processing transactions is halved. This event is known as bitcoin halving, or „halvening” in more lighthearted contexts. It’s like a game where the rules for scoring gradually change to keep the game exciting and sustainable.

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Those blocks of transactions are added roughly every 10 minutes, and the Bitcoin code dictates that the reward for miners is reduced by half after every 210,000 blocks are created. That happens roughly every four years in periods that are often accompanied by heightened Bitcoin price volatility. Because a halving reduces the number of new Bitcoins introduced, demand for new Bitcoins generally increases. This can be How to buy bitcoin cash noted by looking at Bitcoin’s price after each previous halving event—it has typically risen.

Whereas after the halving, its value rose to about $18,000 and then hovered between $3,500 and $12,000 until the subsequent halving in 2020. The same pattern can also be seen following the 2020 halving, after which Bitcoin’s price has hovered between $20,000-$35,000. Halvings will continue approximately every four forex risk management years until all 21 million Bitcoins are mined.

Bitcoin operates on a blockchain—a distributed public ledger that records all transactions. This ledger is maintained by a network of computers (miners) that verify transactions using a Proof of Work (PoW) consensus mechanism. This ensures high security and transparency, making Bitcoin resilient and trusted globally. Bitcoin (BTC) is the world’s first and most valuable cryptocurrency, invented by Satoshi Nakamoto in 2009. Often called ‘digital gold,’ Bitcoin is a decentralized digital currency that operates without a central authority. It allows secure, peer-to-peer transactions and serves as a store of value, with a capped supply of 21 million BTC, making it a popular hedge against inflation.

1. It’s like a game where the rules for scoring gradually change to keep the game exciting and sustainable.
2. As of September 13, 2023, the current Bitcoin block reward is 6.25 BTC.
3. Historically, after previous halving events, the price of Bitcoin has increased—but not immediately, and other factors have played a part.
4. Halving is a regular occurrence and a part of the process made to prevent inflation, so its effects are predictable as well.

How does halving influence bitcoin’s price?

Over time, the impact of each halving will diminish as the block reward approaches zero. Experts predict the next halving event to happen around April 2024. While these events have been planned to minimize impact on the network, they often trigger significant price fluctuations. Historically, the price of bitcoin tends to surge a few months post-halving. Market sentiment typically becomes bullish in the lead-up to a halving, influencing trader behavior.

By slowing the pace, the basic idea is that the scarcity of bitcoin tokens will increase. After the 2020 halving, on May 11, bitcoin’s price continued to perform bullishly a full year after the event took place. This time, it rose by more than 559%, from around $8,700 in 2020 to $56,000 in 2021.