Bitcoin Halving for 2024 is Done and Dusted

Bitcoin has reached a significant milestone with its fourth-ever halving event occurring after the completion of its 840,000th block. This event marks a crucial point where mining rewards are halved, sparking anticipation and speculation within the crypto community about Bitcoin’s future price.

Some analysts are predicting a surge in Bitcoin’s price, with forecasts reaching as high as $250,000. Currently, Bitcoin is trading at $63,960, showing a slight increase of 1.16% over the past 24 hours, according to data from CoinMarketCap.

Mining Rewards Reduced

Following the halving event, Bitcoin miners will now receive 3.125 BTC per mined block, down from the previous reward of 6.25 BTC. This programmed process occurs approximately every four years or after every 210,000 blocks are mined.

Bitcoin’s previous halving events occurred in 2012, 2016, and 2020, resulting in significant reductions in mining rewards over time. The initial halving in 2012 saw the block reward decrease from 50 to 25 BTC.

Purpose of Bitcoin Halving

The primary purpose of Bitcoin halving is to manage scarcity and regulate the inflationary supply of Bitcoin. This mechanism, embedded in the Bitcoin protocol by its pseudonymous founder Satoshi Nakamoto, aims to slow down the creation of new Bitcoin by cutting mining rewards in half.

Major Bitcoin miners have been making strategic moves in preparation for the halving event. Marathon Digital recently announced plans to acquire a 200-megawatt Bitcoin mining facility in Texas for $87.3 million. Additionally, Riot Platforms expanded its hash rate significantly by purchasing 66,560 mining rigs from manufacturer MicroBT in December 2023.

Market Impact and Speculation

The Bitcoin halving typically signals a shift in the market, often initiating a bullish trend in the months following the event. While short-term volatility is expected, there remains optimism about Bitcoin’s long-term price potential.

Billionaire investor Tim Draper remains bullish on Bitcoin, projecting a price of “$250,000 or more” post-halving. However, other factors, such as the recent approval of the Bitcoin ETF in Hong Kong and potential involvement of Chinese banks in Bitcoin, may also influence Bitcoin’s price trajectory, as noted by Herbert Sim, also known as “Bitcoin Man.”