The 4th Bitcoin Halving took place on April 20, 2024, reducing the block reward from 6.25 BTC to 3.125 BTC. Historically, Halvings have influenced Bitcoin’s price and market cycles. Will this event trigger another bull run, or is the impact already priced in? Discover the implications of Bitcoin Halving, its history, and what to expect for 2028.
The 4th Bitcoin Halving took place on April 20, 2024, at block 840,000. As a result, the block reward was reduced from 6.25 BTC to 3.125 BTC.
At the time of this fourth Halving, Bitcoin’s price hovered around $64,000.
Before the 2024 Bitcoin Halving, the last one occurred in 2020. It was followed by two significant events for the cryptocurrency market : the 2021 bull run, which pushed Bitcoin to its all-time high (ATH), and the 2022 bear market.
The date of the Bitcoin Halving is not determined by time but by the number of blocks mined. A Halving is systematically programmed to occur every 210,000 blocks, which equates to approximately every four years.
This event is a key moment in Bitcoin’s timeline. During a Halving, the reward miners receive for each mined block is reduced by half. This reduction is a fundamental feature of the Bitcoin protocol, designed to control inflation.
The next Bitcoin Halving is expected to take place around April 2028. It will mark the 5th Halving in Bitcoin’s history.
At that time, the block reward will decrease from 3.125 BTC to 1.5625 BTC.
Here’s a countdown to the upcoming Bitcoin Halving, the much-anticipated block reward reduction often viewed as a catalyst for bullish market cycles.
Please note that the NiceHash countdown may show slight variations compared to other platforms offering a countdown for the next Halving event. Stay tuned for precise updates as the date approaches.
Bitcoin Halving is a concept introduced by Satoshi Nakamoto, the anonymous creator of Bitcoin. It was designed to mimic the digital scarcity of gold by periodically reducing the number of new Bitcoins entering circulation.
This process, known as “Halving” (or block reward reduction), aims to increase Bitcoin’s value over the long term. Both investors and crypto traders closely watch this event. Why? Because historically, Halvings have often triggered significant Bitcoin price increases.
To break it down, Bitcoin Halving is a predictable and inevitable event that occurs every 210,000 mined blocks, approximately every four years. It involves cutting in half the reward miners receive for validating a newly created block on the Bitcoin blockchain.
The primary goal of Halvings is to control Bitcoin’s supply, which is capped at 21 million coins. This limit was set to create artificial scarcity, similar to that of gold. This scarcity is intended to give Bitcoin an intrinsic value and shield it from inflation.
Unlike traditional fiat currencies, which can be printed at will by central banks, Bitcoin’s supply is fixed and predictable, making it a more stable and inflation-resistant store of value over time.
Bitcoin Halving has significant implications for the Bitcoin ecosystem.
First, it impacts mining profitability. Since the 4th Halving in 2024, Bitcoin miners now receive 3.125 BTC per block. This reward will drop to 1.5625 BTC after the 2028 Halving. This means miners will earn fewer rewards for the same amount of work, which could lead to a reduction in mining activity if profitability becomes too low for some miners.
However, the reduction in new Bitcoin supply could also drive a rise in BTC’s price. If supply decreases while demand remains steady, it could logically result in increased scarcity, boosting Bitcoin’s value. This theory has been supported by historical trends, as previous Halvings often led to significant price increases.
To provide a clearer perspective, here’s an overview of previous Bitcoin Halvings and their impact on BTC’s price :
| Halving Event | Date | Block Reward Before (BTC) | Block Reward After (BTC) | BTC Price Before ($) | BTC Price After 1 Year ($) |
|---|---|---|---|---|---|
| 1st Halving | November 28, 2012 | 50.00 | 25.00 | 12 | 1.000 |
| 2nd Halving | July 9, 2016 | 25.00 | 12.50 | 650 | 2.500 |
| 3rd Halving | May 11, 2020 | 12.50 | 6.25 | 8.700 | 60.000 |
| 4th Halving | April 20, 2024 | 6.25 | 3.125 | 64.000 | TBD |
When the last Bitcoin is mined, the system will become entirely deflationary. At that point, miners will no longer receive rewards from newly created Bitcoins but will rely solely on transaction fees. This raises questions about the sustainability of the mining model and how Bitcoin can remain viable in a world where traditional mining becomes unprofitable.
However, this scenario is still far in the future. The estimated date for the last Bitcoin to be mined is 2140. While this is over a century away, it’s not too early to start considering what this could mean for the Bitcoin economy and the broader cryptocurrency ecosystem.
Historically, the months following a Bitcoin Halving have often seen a significant increase in BTC’s price. After the 2020 Halving, Bitcoin reached an all-time high (ATH) of $69,000 in 2021. This ATH was surpassed before the 2024 Bitcoin Halving, fueled by the approval of spot Bitcoin ETFs.
Not only did Bitcoin experience remarkable growth, but altcoins also reached record highs during this period. Previous BTC Halvings have often been followed by an altcoin season, where altcoins surged significantly and, in many cases, outperformed Bitcoin in terms of percentage gains.
It’s important to note that a Halving does not automatically guarantee an increase in Bitcoin’s price. While the cryptocurrency market tends to operate in cycles, past performance is not always a reliable indicator of future results, especially in a market as volatile as cryptocurrencies.
Investors should evaluate multiple factors when assessing the potential impact of a Bitcoin Halving on its price. Market sentiment, macroeconomic conditions, regulatory developments, and the adoption of Bitcoin all play significant roles in shaping the price movements following a Halving.
The 2024 Bitcoin Halving has been highly anticipated by cryptocurrency investors and traders, who are looking to capitalize on the opportunities that could arise around this pivotal event.
Many crypto analysts and traders have shared their Bitcoin price predictions for before and after the Halving. Some forecast that BTC could reach $100,000 in 2024, but accurately predicting Bitcoin’s future value remains extremely challenging due to the volatile nature of the market.
While the Halving is undoubtedly a key event in the history of cryptocurrencies and deserves close attention, it is important to remember that it is just one of many factors that can influence Bitcoin’s price. Macroeconomic trends, market sentiment, adoption rates, and regulatory developments all play significant roles in determining Bitcoin’s future trajectory.
Léa is a member of the InvestX team, dedicated to guiding users through their learning journey. Passionate about cryptocurrencies, she closely follows market trends. On InvestX.fr, Léa writes articles to help readers decode the latest news and stay informed about the ever-evolving blockchain world.
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