Bitcoin halving dates are one of the most important days in the cryptocurrency ecosystem — typically leading to increased attention from the mainstream press and higher prices for BTC and other digital assets!
In this guide, we’ll break down everything you need to know about Bitcoin halving dates — including data about BTC’s performance after past halvings!
Bitcoin halving is a pre-programmed event that occurs approximately every four years, where the reward for Bitcoin mining is cut in half. Because of the reduction in the supply of new Bitcoin, halvings typically result in an increase in the price of BTC.
What is the next Bitcoin halving date?
The next Bitcoin halving is scheduled to take place in April 2024. Bitcoin rewards will be cut from 6.25 to 3.125.
Bitcoin halving chart
Here’s a look at how Bitcoin’s price has changed in recent years, including before and after each halving date.
How does Bitcoin halving work?
Bitcoin relies on Proof of Work (PoW) to validate transactions. In return for using electricity and computation to solve complex math problems, Bitcoin miners receive a portion of newly-created BTC.
Bitcoin’s underlying software halves rewards for miners every 210,000 blocks — or approximately every four years — which ensures that the total supply of Bitcoin will never surpass 21 million units.
After each halving event, some miners may be forced to shut down their operations, and the hashrate (computing power) of the Bitcoin network may decrease temporarily. However, reduced supply typically leads to higher prices.
Fun Fact: 98% of all Bitcoins ever created will be mined by 2032.
How does the Bitcoin halving impact the wider cryptocurrency market?
In the past, Bitcoin halvings have led to rallies in the wider cryptocurrency market. It’s possible that halvings lead to increased attention on the crypto ecosystem — which in turn leads to higher demand and higher prices for all digital assets.
When was the last Bitcoin halving date?
The last Bitcoin halving took place on May 11, 2020. The reward for mining a block of Bitcoin fell from 12.5 to 6.25.
After this Bitcoin halving, the cryptocurrency market went on a bull run, with the price of Bitcoin increasing by 5x in the next calendar year (though it’s likely that this can be attributed to multiple factors, including global economic conditions in the wake of the COVID-19 pandemic).
What will happen after Bitcoin halving in 2024?
Bitcoin halvings reduce the total available supply of BTC. As a result, they’ve typically led to an increase in the price of Bitcoin.
While there was a significant surge in the price of Bitcoin and other cryptocurrencies after each halving date, it’s important to remember that there are a multitude of factors that determine the price of cryptocurrency — such as global economic factors and regulatory conditions.
For more information, check out our guide on how cryptocurrencies gain value.
What is the significance of the Bitcoin halving?
Remember, Bitcoin is designed to be an alternative to fiat currencies like the US dollar with high levels of inflation. The Bitcoin halving is a necessary event to control the supply of BTC.
Bitcoin halving reduces the block reward given to miners, effectively lowering the rate at which new bitcoins are created. This mechanism is intended to mimic the scarcity of resources like gold.
Increase in value
The halving events decrease the supply of new BTC entering the market. This reduction in new BTC is expected to drive up price, following the basic principles of supply and demand.
Alternative to fiat currencies
Halving events help differentiate Bitcoin from fiat currencies like the US dollar — where supply increases and purchasing power diminishes over time.
Fun Fact: $100 in 2024 has the same value as $80 in 2018 — highlighting how inflation has reduced the average American’s spending power! Meanwhile, the price of Bitcoin has risen from $20,000 to $70,000 in the same time period!
Bitcoin halving dates history
Since Bitcoin’s creation, there have been three halving dates:.
What is the next Bitcoin halving date? The next Bitcoin halving is scheduled to take place in April 2024. Bitcoin rewards will be cut from 6.25 to 3.125.
The much-anticipated bitcoin halving event has come and gone, quietly marking a historic moment in the world of digital assets. On April 19, 2024, the block reward for bitcoin miners was reduced by half, from 6.25 BTC per mined block to 3.125 BTC per mined block.
Analysts at Deutsche Bank wrote on Thursday that the halving was “already partially priced in by the market” and that they did “not expect prices to increase significantly following the halving event”.
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.
The previous halving in 2020, for instance, released 1,312,500 bitcoins to the public and decreased the block reward from 12.5 bitcoin to 6.25 bitcoin. The 2024 halving reduces this further, releasing half of the previous amount - 656,250 bitcoins - and slashing the previous rewards in half - to 3.125 BTC per block.
"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.
When its supply is reduced through halving, and if the demand stays constant or increases, we often see a ripple effect on the prices of other cryptocurrencies.
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.
Bitcoin BTC +2.75% 's price is expected to fall post-halving as the event has already been factored into the current pricing, according to JPMorgan analysts.
Thielen, though, contended that those bull moves were largely a result of the positive macro environment, and not driven by the halving itself. The most recent halving in May 2020, for example, came alongside massive monetary and fiscal stimuli surrounding the Covid shutdowns.
The halving will likely not cause a significant movement in price on the day it happens. Part of the economic impact of the halving has likely already occurred, with investors buying bitcoin in anticipation of the event, and the aftershocks of the halving will continue for months or years afterward, experts say.
A recent report predicts that Bitcoin will reach a new all-time high in 2024. Bitcoin (BTC) is expected to reach a new record of $88,000 (€82,000) throughout the year, before it settles around $77,000 at the end of 2024, according to a new report. The cryptocurrency's current price sits at around $43,000.
As mining rewards decrease with each halving, the last bitcoin is projected to be mined around the year 2140. At this point, miners will rely solely on transaction fees for validating blocks.
A Bitcoin halving cuts the rate at which new Bitcoins are released into circulation in half. The rewards system is expected to continue until 2140 when the proposed limit of 21 million bitcoin is theoretically reached. In 2009, the reward for each block in the chain mined was 50 bitcoins.
Bitcoin miners that successfully validate transactions are currently awarded 6.25 new Bitcoin for each mined block. This date is based on current estimates that change with every new block. The halving will reduce the block reward to 3.125 BTC.
As a result of the latest halving, the daily reward paid to miners will drop to 450 Bitcoin from 900. A highly anticipated Bitcoin software update called the “halving” has been completed, dealing a potential blow to the companies that make money by ensuring that the digital currency functions smoothly and securely.
During a halving, the number of bitcoins that enter circulation roughly every 10 minutes, known as block rewards, is reduced by half. For instance, in May 2020, the block reward dropped from 12.5 to 6.25 BTC, marking the third halving in Bitcoin's history. The fourth halving in 2024 saw block rewards drop to 3.125 BTC.
Every four years, on the halving day, the amount of new Bitcoins created gets cut in half. This means that when Bitcoin halves, the reward given to the contributors securing the network is reduced by 50%, directly impacting the rate at which new Bitcoins are introduced into circulation.
Introduction: My name is Errol Quitzon, I am a fair, cute, fancy, clean, attractive, sparkling, kind person who loves writing and wants to share my knowledge and understanding with you.
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