Bitcoin halving (2024)

FAQs

Will Bitcoin go up or down after halving? ›

“It's pretty much Economics 101” that bitcoin prices go up after halving, according to Sevens Report analyst Tom Essaye, who explained that so long as demand doesn't decrease and new supply goes down, the “only thing left to move is price.”

Bitcoin halving is considered bullish because each event reduces the rate at which future bitcoins are created. This then boosts the scarcity and value of existing bitcoins.

Markus Thielen, the head of research at 10x, says the halving is “associated with price increases due to reduced supply” but investors will have to wait for a price peak, which typically comes 500 days after a halving.

After the 2012, 2016 and 2020 halvings, the bitcoin price ran up about 93x, 30x and 8x, respectively, from its halving day price to its cycle top.

Bitcoin, it found, is likely to hit an average peak price of $87,875 in 2024, with some experts predicting it will climb as high as $200,000. On the flip side, the average lowest price Bitcoin could hit by the end of 2024, is seen as $35,734, the report said, with some predicting it will fall as low as $20,000.

“On the other hand, miners who own their low-cost power are better positioned to thrive in the post-halving environment, as their operational costs will be lower, allowing them to be more flexible with their capital.”

Price, profitability, and perception are valuable aspects. It is important for companies dedicated to Bitcoin mining to know that the halving affects the less productive or less efficient miners. Although the production cost is the same, the reward is lower, which causes profitability to be very high.

After the halving, the rate of issuance of new bitcoin as well as the rewards for successful bitcoin miners are cut in half. There can only be 21 million bitcoin, and fewer new tokens entering circulation could impact bitcoin prices. That's why the halving is watched closely by miners and investors alike.

Historical data indicates that in the years following a halving, Bitcoin has experienced staggering price appreciation of around 400%. If this trend were to continue and our projected $100,000 price target hits in 2024, Bitcoin could see its price reach a staggering $500,000 in 2025.

Consider this: if it were universally anticipated that bitcoin's value would surge immediately following the 2024 halving, investors would likely move to acquire bitcoin before the event, driving up its price in the present rather than in the future.

How long after halving is the bull market? ›

According to analysts at QCP Capital, investors may have to wait around two or three months for the bitcoin halving's supply constraint to impact the market. "The previous three halvings saw spot price move higher exponentially only 50-100 days after the actual halving day.

"We do not expect bitcoin price increases post-halving as it has already been priced in," analysts led by Nikolaos Panigirtzoglou wrote in a report on Wednesday, reiterating their previous similar views. "In fact, we see a downside for the bitcoin price post-halving for several reasons."

In 2030, the price of 1 Bitcoin could reach a height of $347,783. Will BTC rise again? After the fourth Bitcoin Halving, the BTC price trend has slowly gained bullish momentum. As per the historical records, the BTC price is expected to rise again and hit the $100K mark.

Bitcoin halving means miners receive 50% fewer bitcoins per completed block, making Bitcoin mining less lucrative. But halvenings historically lead to Bitcoin price increases, incentivising miners to keep mining despite the lower reward.

“Bitcoin has run into a brick wall with the halving upon us as ETF demand cools off while geopolitical risks and uncertainty about inflation and monetary policy move to the fore,” said Antoni Trenchev, co-founder of crypto lender Nexo.

On April 20th the bitcoin halving will take place, which is set in the cryptocurrency's technology to cut the rate at which bitcoin is created. The event happens every leap year and is eagerly anticipated by crypto enthusiasts.

Price, profitability, and perception are valuable aspects. It is important for companies dedicated to Bitcoin mining to know that the halving affects the less productive or less efficient miners. Although the production cost is the same, the reward is lower, which causes profitability to be very high.

The block reward helps miners cover the high costs of mining. Every four years however, the algorithm cuts the block subsidy in half in an event called the halving. This process will continue until around the year 2140, when the flow of new bitcoin will drop from one satoshi per block to zero.