Can Bitcoin’s Upcoming Halving Event in 2024 initiate its next Bull Run?

Introduction

The crypto market is no stranger to volatility, and Bitcoin, the pioneering digital currency, has experienced its fair share of ups and downs. It feels like quite a while since the previous bullish phase, during which Bitcoin hit its record peak of $69,000. From the latter part of 2021 onwards, a series of abrupt market downturns and business shutdowns have contributed to a decline in Bitcoin’s price on the charts. Nevertheless, a resurgence in 2023 has rekindled optimism regarding Bitcoin’s future potential. As the crypto community looks ahead, attention is turning towards the next potential catalyst for Bitcoin’s price action: the next Bitcoin halving event in April 2024.

In 2022, Bitcoin corrected significantly after its impressive 2021 rally. Following a peak near $69,000, it entered a bear market, dropping below $20,000. This downturn raised questions about Bitcoin’s future direction and had investors speculating on catalysts for a bullish resurgence, including the influential halving event that occurs roughly every four years. Bitcoin halving 2024 is an event very closely looked into by crypto experts to analyze how the bitcoin halving will impact the market in 2024. 

Facts: Bitcoin miners’ rewards are halved during a halving, reducing new supply and upholding its scarcity over time.

Know More: What Happens When All 21 Million Bitcoins are Mined?

The next Bitcoin halving event is expected to take place in April 2024, based on the crypto’s block reward schedule. This event has garnered significant attention and speculation within the crypto community, as past halvings have been associated with significant price increases. The previous halving events in 2012 and 2016 triggered substantial bull runs, propelling Bitcoin to new all-time highs.

While past performance does not guarantee future results, the historical significance of Bitcoin’s halving events has piqued the interest of investors and analysts alike. The anticipation of reduced supply and the potential impact on Bitcoin’s scarcity could potentially fuel renewed interest and drive the next bull run in the crypto market.

With the crypto community eagerly anticipating the April 2024 halving event, observers are keenly watching market trends for potential impacts on Bitcoin’s price. While precise predictions are elusive, this upcoming halving event holds significant promise in shaping Bitcoin’s future trajectory.

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Briefly: What is Bitcoin Halving?

Bitcoin halving, often referred to simply as “the halving,” is a pre-programmed event that occurs approximately every four years in the Bitcoin network. During this event, the rewards that miners receive for validating and adding new transactions to the blockchain are halved. In other words, the number of newly created Bitcoins as a reward for mining a new block is reduced by 50%.

Before a halving event, miners receive a set number of Bitcoins for each newly mined block. This started at 50 Bitcoins per block when Bitcoin was launched. Halving events occur approximately every four years or every 210,000 blocks, cutting the block reward in half. For instance, after the first halving, the reward is reduced to 25 Bitcoins, then 12.5 Bitcoins, and so on. 

This reduction significantly impacts the supply of new Bitcoins, slowing its growth and often generating attention and speculation in the crypto community. Some believe it can increase Bitcoin’s price due to increased scarcity, affecting miner incentives and potentially requiring more efficient operations or lower energy costs to remain profitable.

The crypto community eagerly anticipates this event due to its historical association with significant price rallies. Previous halvings in 2012, 2016, and 2020 have been followed by remarkable bull runs and substantial increases in Bitcoin’s value.

The upcoming halving event in April 2024 is expected to further reduce the block reward, creating even scarcer supply dynamics. While the exact impact on Bitcoin’s price is uncertain and subject to market forces, the halving event remains a significant milestone that generates excitement and speculation within the crypto ecosystem. It serves as a reminder of Bitcoin’s unique and deflationary monetary policy, distinguishing it from traditional fiat currencies.

Historically, Bitcoin halving events have been consistently followed by BTC prices touching new all-time highs. Check out the graphic below that was sourced from a report by CNBC!

Additional Read: Should You Invest in BTC Before Bitcoin Halving Event in 2024?

BTC Halving Events and All-Time Highs

Thanks to this, the upcoming Bitcoin halving event, which is now less than a year away, is being watched very keenly by Bitcoin investors, traders and other participants in the crypto market since, usually, things tend to improve after the halving event. However, it must be noted that Bitcoin halving isn’t the only factor impacting BTC price. Still, it is a very significant event for investors and is core to the investment case for Bitcoin as a good store of value with limited supply.

Additional Read: Litecoin Halving 2023 – Up Next!

How Has BTC Price Reacted After Bitcoin Halving Events?

BTC/USD | Source: TradingView

Halving Event Date	BTC Price Increase (%)	Number of Days After Halving
November 28, 2012	~77600%	392
July 9, 2016	~2100%	553
May 11, 2020	~660%	567

The table above illustrates the historical price performance of Bitcoin following its previous halving events. Each halving event was followed by a significant rally in the  BTC price, resulting in substantial returns for investors. 

Here’s a breakdown of the data:

1. 2012 Bitcoin Halving: After the first halving in 2012, the price of Bitcoin surged by approximately 77,600%. This remarkable increase took place over a period of 392 days, highlighting the long-term bullish impact of the event.
2. 2016 Bitcoin Halving: The second halving in 2016 witnessed a price surge of around 2100%. This substantial gain occurred over a period of 553 days, further reinforcing the positive market sentiment following the halving.
3. 2020 Bitcoin Halving: The most recent halving occurred in 2020, and it resulted in a price increase of approximately 660%. This substantial rally unfolded over a period of 567 days, demonstrating the sustained upward momentum that followed the event.

Learn More: Bitcoin Price Prediction

Conclusion

It’s crucial to emphasize that previous performance should not be relied upon as a predictor of future outcomes, and numerous variables can impact the Bitcoin price. While past data indicates a trend of price growth after halving events, it doesn’t assure a similar result for upcoming halving events. Investors should prioritize a comprehensive assessment of multiple factors and conduct thorough analysis when making investment choices. 

Nevertheless, the historical price trends following previous halvings have captured the crypto community’s attention, creating anticipation and speculation around the potential impact of the upcoming halving event in April 2024.