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2024 is set to be a big year for several reasons. A big one is that Americans can finally vote Joe Biden out of office and spare their nation more incompetency, but a different reason is because the next bitcoin halving is set to occur.
The Halving Is on Its Way
Bitcoin halving events take place every four years or so. It’s when the world’s number one digital currency by market cap undergoes a technical change that causes its rarity to grow via the slashing of digital rewards that go to miners.
Basically, for every new block that gets mined and extracted from the blockchain to be added to circulation, the miners receive crypto-based rewards for their activities, though with each halving, the rewards they get are ultimately reduced by 50 percent.
2024 will be no different, and while the specific date is not yet known, the halving is slated to occur in either April or May of that year. In anticipation of the halving, the bitcoin price has been spiking over the last several weeks, and the currency recently hit an 11-month high of about $30K. This marks the first time the currency has struck such a chord since June of last year.
Vijay Ayyar – vice president of corporate development and international at crypto exchange Luno – commented in an interview that the “cyclical” bottom for BTC has formed largely due to the banking crisis that occurred earlier in the year. He stated:
This tends to happen a year or so prior to the bitcoin’s halving event, which is slated next for around April 2024.
One of the cool things about all past halving events is that they usually precede major rallies, and there are many analysts that don’t think 2024 will be an exception to the rule. They predict that the price of bitcoin is going to spike even higher and thus push it to a new record price. Jamie Sly – analyst at Crypto Compare – said in a statement:
Analyzing historical bitcoin halving patterns, it appears that investors often accumulate bitcoin in the run-up to the halving event, although the exact timing and extent of returns post-halving can differ. The accumulation period from the market bottom after the breakout to the halving date has historically spanned at least 500 days… This would mean, if we were to assume that the market bottom for this cycle was in November [of] last year (when bitcoin hit a yearly low of $15,760), then we are only 142 days into the current cycle. This would correlate with the next expected bitcoin halving date, which is another 378 days ahead.
BTC Has Been Doing Quite Well
Bitcoin is presently more than 70 percent higher than where it was at the end of 2022.
By that time, it had fallen into the mid-$16K range.