Bitcoin’s fourth halving event is set to take place after midnight UTC on April 20, reducing the block subsidy reward for miners from 6.25 BTC to 3.125 BTC per block. This event occurs every 210,000 blocks or approximately every four years. Previous halving events have historically led to major Bitcoin price rallies, with the block reward decreasing from 50 BTC to 25 BTC in 2012, then to 12.5 BTC in 2016, and most recently to 6.25 BTC on May 11, 2020. The next halving event in 2024 will see the subsidy reward drop to 3.125 BTC per block, moving towards a total of 21 million Bitcoins in existence.
Bernstein predicts a bullish path for Bitcoin post-2024 halving event, with a potential price target of $150,000 by the end of 2025. However, Coinify CEO Rikke Staer warns that the halving event could be a “sell-the-news” situation, as less efficient miners may need to sell their BTC holdings, leading to potential sell pressure in the market. The presence of institutional investors and increased retail investor experience are factors that could impact the market post-halving.
Bitcoin’s current price is around $64,500, showing a 1.33% increase over the past 24 hours. Earlier in the day, the price fell below $60,000 due to reports of Israeli missiles hitting an Iranian site, but has since rebounded strongly. The impact of the halving event on less efficient mining operations is still uncertain, with some miners potentially needing to sell their holdings. The strengthening of institutional presence in the market and retail investor experience could also play a role in shaping Bitcoin’s post-halving trajectory.
Historically, Bitcoin halving events have contributed to significant price rallies, and the upcoming halving event in 2024 is expected to follow a similar pattern. With the gradual reduction in block rewards, the scarcity of Bitcoin is set to increase, leading to potential price appreciation. The long-term vision is for only 21 million Bitcoins to exist, creating a scarcity that could further drive demand and price.
Moreover, the increasing interest from institutional investors and retail investors’ growing experience in the market are factors that could influence Bitcoin’s post-halving performance. While there are predictions of a bullish trajectory following the halving, there is also caution regarding potential sell pressure from less efficient miners. Overall, the upcoming halving event is anticipated to have a significant impact on the cryptocurrency industry and Bitcoin’s price movements in the coming years.
As Bitcoin’s halving event approaches, the industry is closely watching to see how it will impact the market. The reduction in block rewards for miners could lead to changes in mining operations and potentially influence Bitcoin’s price movements. With historical data showing a correlation between halving events and price rallies, investors are anticipating the outcome of the upcoming halving and how it will shape Bitcoin’s future trajectory.
