Surprising effects of Bitcoin halving: What will the next reduction in miner rewards bring?

Bitcoin: What Will the Expected Halving on April 20, 2024 Bring?

On April 20, 2024, Bitcoin – the most popular cryptocurrency in the world – will undergo another halving, which means cutting miners’ rewards in half. Currently, the rewards are 6.25 BTC per mined block and they will decrease to 3.125 BTC. Halving occurs during bullish trends in Bitcoin prices, thus increasing investors’ interest.

Forecasts and Analysis Before the Halving

Cryptocurrency industry analysts predict that the upcoming halving could have a significant impact on Bitcoin’s future price trajectory. The current situation, where Bitcoin has surged by an impressive 67% in the first quarter of 2024, mainly due to increased demand on ETF exchanges, further fuels expectations regarding potential price changes. Some analysts even suggest that Bitcoin is undervalued and could rise to a record-breaking $100,000 within a year.

Differing Opinions on the Impact of Halving

There are differing opinions on whether the cryptocurrency market has already priced in Bitcoin’s upcoming halving. Nevertheless, the decreasing supply of Bitcoin and the continually growing demand for ETF funds lead some experts to argue that the current moment is favorable for investing in Bitcoin. Researchers from NYDIG even emphasize that the impact of halving on prices may be marginal compared to the demand for ETF funds.

The Role of Halving in Bitcoin’s Price Cycles

Historical data indicate that after each halving, the percentage price increase of Bitcoin decreases, suggesting a similar pattern this time as well. Despite differing opinions on the immediate impact of halving on Bitcoin’s price, this event plays a crucial role in shaping the cryptocurrency’s price cycles. It is also important to note that Bitcoin’s future post-halving often depends on macroeconomic events worldwide.

Effects of Halving on Miners’ Profitability

One of the significant aspects of halving is its impact on miners’ profitability, especially with rising energy costs. Currently, according to IntoTheBlock findings, miners’ revenues are at their peak, meaning any reduction in rewards may have a minimal impact on them. Nevertheless, in the long term, halving could bring significant changes to the entire cryptocurrency community.

All indications point to Bitcoin’s upcoming halving being a topic that will stir many emotions and analyses in the world of cryptocurrencies. The ultimate consequences of this event, however, remain somewhat unpredictable, adding further allure to the entire situation for investors and cryptocurrency market observers.