Bitcoin has now successfully undergone its fourth halving event, with miners’ block rewards slashed in half again (from 6.25 to 3.125 BTC). The Bitcoin halving (also called “the halvening”) is programmed to happen every 210,000 blocks – approximately every four years.
With miners set to receive 50% fewer BTC, the rate of Bitcoin creation will also be slowed down. Miners will now produce 450 BTC per day compared to a daily production average of 900 BTC prior to the halving.
The previous three halvings occurred in 2012, 2016, and 2020, significantly reducing mining rewards over the last decade. In 2012, the first halving event saw the reward for mining a block drop from 50 to 25 BTC.
While the latest Bitcoin halving occurred at a block height of 840,000, the next one is expected at a block height of 1,050,000 (most likely in the first quarter of 2028). The halvening will continue until around 2140 when the last Bitcoin is mined.
How Will Bitcoin Halving Impact The Crypto Space?
This Bitcoin halving was one of the most-anticipated events of 2024 in the cryptocurrency industry. Specifically, key players in the BTC mining industry have been preparing for this event, considering its apparent effect on their major means of revenue.
As reported on Bitcoinist weeks ago, several Bitcoin miners in the United States have been trying to adjust to the new life following the Bitcoin halving. The report mentioned how these firms are moving their old mining equipment out of the US and upgrading to more efficient ones to ensure they remain profitable.
Furthermore, there have been wide and interesting speculations on how the latest occurrence of the halvening would impact the price of Bitcoin. From a historical perspective, the premier cryptocurrency tends to put in a positive price performance during the halving year.
As a result, the crypto community has seen several audacious and bold bullish projections for the price of Bitcoin this year. Notably, Jan3 and Bitcoiner CEO Samson Mow believes BTC could rise to as high as $1 million following the halving event.
At the same time, there have also been some bearish outlooks for the market leader post-halving. Specifically, leading investment bank JPMorgan has predicted that Bitcoin could decline to $42,000 after halving due to increased production costs and mining difficulties.
Although Bitcoin has struggled to replicate its positive Q1 performance over the past few weeks, investors will be hoping that the halving event will be enough of a catalyst for the cryptocurrency to fulfill its early promise. Meanwhile, enthusiasts will expect the fresh optimism to spread to the broader crypto market, propelling other major assets to the upside.
Bitcoin Price At A Glance
As of this writing, the Bitcoin price stands at around $63,526, reflecting a 2.6% increase in the past 24 hours.
Bitcoin price at $63,655 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView