Every four years, the cryptocurrency world experiences a significant event known as Bitcoin halving, which used to significantly impact the whole industry. Halving affects the creation of new bitcoins and the entire crypto market. When is BTC halving? And what might happen after it? This article explains the essence, history, and potential future implications of Bitcoin halving.
What is a Bitcoin Halving?
Bitcoin halving refers to the event where the reward for mining new blocks is halved, meaning miners receive 50% less BTC for verifying transactions. This mechanism is built into the Bitcoin protocol to reduce the rate at which new bitcoins are generated. As a result, Bitcoin halving influences the supply of new bitcoins entering circulation, which can lead to significant shifts in its price due to the principles of supply and demand.
Historical Look at Bitcoin Halving Events
The Bitcoin halving dates history reveals three major events before the upcoming one. Starting in November 2012, July 2016, and May 2020, each halving has led to a notable increase in Bitcoin’s value. For instance, look at these crypto halving dates and BTC price movements during the previous halving cycles (4 years):
- The first halving cycle (November 2012 – July 2016): the Bitcoin price grew from the lowest price of $12.4 (December 2012) to $1,170 (November 2013).
- The second halving cycle (July 2016 – May 2020). The lowest price for BTC during this cycle was $535 (August 2016), and the highest – $19,400 (December 2017).
- The third halving (May 2020 – April 2024) was followed by the BTC price growth from a minimal $8,590 (May 2020) to $73,628 (April 2024). It is important to note that this cycle has not been completed yet, and the asset’s price might change by the end of the month.
These Bitcoin halving years mark significant milestones in the asset’s history, showcasing a pattern where the reduced supply, paired with steady or increasing demand, has led to price rallies.
What to Expect from the Next Halving?
The next Bitcoin halving date is anticipated around April 20, 2024. Investors are closely watching this event for its potential to influence Bitcoin’s price. Given the history of price surges following previous halvings, market participants are actively discussing the future halving cycle. However, the uniqueness of each halving event, including factors like the introduction of Bitcoin ETFs and the role of traditional investors, suggests that while historical patterns provide a basis, the exact outcome remains uncertain.
Given the potential for slippage in crypto markets, investors should cautiously approach the next halving. While historical data may provide optimism, the crypto market’s inherent volatility requires a measured approach.
