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Bitcoin: The halving is coming sooner than expected, the countdown is speeding up!

Mon 26 Feb 2024 ▪ 4 min of reading ▪ by Fenelon L.
Event

In less than 8 weeks, the Bitcoin network will experience its fourth Halving, a crucial event that cuts the miner’s reward in half, thereby reducing the supply of new bitcoins by half. All eyes are on this date, estimated to be around April 15 next year by NiceHash, one of the major mining platforms.

Une horloge Bitcoin

NiceHash estimates the date of the Halving to be April 15, 2024

The fourth Bitcoin halving, a major event scheduled to occur every 210,000 blocks, will take place in less than 50 days, on April 15, 2024, according to estimations by NiceHash, one of the world’s major mining platforms. This halving will cut the BTC reward given to miners for each new validated block in half.

Indeed, since the launch of Bitcoin in 2009, this reward has gradually decreased from 50 BTC to 25 BTC in 2012, then to 12.5 BTC in 2016, and finally to 6.25 BTC during the last halving in 2020. Consequently, after April 15, 2024, it will drop to 3.125 BTC per block.

Historically, halvings have had a significant impact on the balance between supply and demand for Bitcoin. Indeed, by cutting in half the issuance of new bitcoins, each halving mechanically accentuates the scarcity of the leading crypto. Furthermore, with constant demand, this reduction in supply inevitably tends to drive up prices, as demonstrated by the previous halvings.

According to the Stock-to-Flow model, which analyzes the impact of BTC scarcity, this halving of production could boost its price up to $450,000, with a symbolic threshold of $100,000 surpassed by September 2024. An optimistic prediction indeed, but one that underscores the crucial importance of this event for market dynamics.

A new era for Bitcoin?

The 2024 halving will undoubtedly have a major impact on the Bitcoin mining ecosystem. Indeed, with their income halved overnight, many miners could face serious profitability issues.

Only the most efficient and effective companies, equipped with the best hardware and benefiting from the lowest energy costs, should be able to overcome this challenge in a significantly more competitive environment, unless the price of BTC increases significantly.

According to a recent report by Fidelity Digital Assets, Bitcoin miners may incur significant losses if the price of BTC does not exceed $80,000 before the next halving.

Meanwhile, with the recent emergence of Bitcoin Spot ETFs, which facilitate access to the Bitcoin market for institutional investors, this fourth halving could well mark the beginning of a new era. Combined with the growing adoption of digital assets by large investors and the general public, it is certainly expected to have a notable impact on the dynamics of BTC’s price.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.