In the fast-paced world of digital currencies, few things are as significant as a Bitcoin halving.

The next halving seems to be set for this April, so what's in store for Bitcoin's future and how can enthusiasts prepare for the impact?

Let's dive into what's happening and what it might mean for crypto markets.

 

Key takeaways

  • The next Bitcoin Halving looks likely to happen this April
  • Historically, bitcoin's value has skyrocketed in the months leading up to the halving
  • While indicators and analyses can provide forecasts, the halving event can always spur unexpected market behaviour - cryptocurrency remains unpredictable

 

Contents

  • What is Bitcoin Halving?
  • Bitcoin Halving 2024: When will it happen?
  • What happened last time?
  • What do analysts predict for 2024?
  • Trading Bitcoin Halving 2024 with FXTM
  • The bottom line

 

What is Bitcoin Halving?

A bitcoin halving, also known as a "halvening", is a programmed event in which the rewards for mining a block in the Bitcoin blockchain is cut in half.

This event was embedded in bitcoin from the very start by its mysterious creator, Satoshi Nakamoto, and is designed to occur roughly every four years, or after 210,000 blocks are created. It is essentially a control mechanism to manage the inflation rate by reducing the rate at which new bitcoin enters the ecosystem.

The process of mining is integral to understanding the implications of bitcoin halving. In short, miners use powerful computers to solve complex mathematical problems that result from bitcoin transactions. Once the problem is solved, the miner is rewarded with bitcoin.

At launch in 2009, the reward was 50 BTC per block. Fast forward to the halving events of 2012,2016 and 2020, and the reward dropped to 6.25 BTC. Now, we stand on the brink of the next halving in 2024, where this reward will reduce even further ─ to 3.125 BTC. The halving not only impacts miners, but it also resonates through the entire crypto market.

This event aligns with bitcoin's capped limit of 21 million coins; once this threshold is reached, no more bitcoin will be created, cementing its status as a finite asset.

 

Bitcoin Halving 2024: When will it happen?

Circling back to the next halving, the question on everyone’s mind is, "When will it happen?" The 2024 halving is anticipated to occur this April, around April 20th, though this isn't set in stone.

The halving happens when the 740,000th block is mined. The network is currently around block 685,000.

 

 

What happened last time?

In May 2020, bitcoin underwent its third halving since its inception. Historically, post-halving periods have seen significant price increases, and the 2020 halving was no exception.

Several months prior to the event, there was a surge of interest with price doubling from October 2019 to its peak just before the halving. The event itself saw the price rise from around $8,500 to over $10,000. The year following the halving, bitcoin reached a record high, illustrating the direct correlation between halving events and substantial gains.

 

What do analysts predict for 2024?

Analysts suggest that the 2024 bitcoin halving is likely to have a similarly bullish effect. Predicting the exact rise is not a very wise move in the volatile world of cryptocurrencies, but there is a consensus that the halving could potentially spark a significant uptick in value. But why is this the case?

The halving event essentially reduces the supply of new bitcoins, which usually leads to an increase in demand. This simple shift in supply and demand dynamics can cause prices to surge, making it a lucrative opportunity for Bitcoin investors and traders.

However, it's crucial to remember that the price of bitcoin is influenced by a myriad of factors, and a market rise post-halving is not guaranteed.

 

Trading Bitcoin Halving 2024 with FXTM

For those looking to capitalise on the 2024 bitcoin halving through trading, FXTM stands ready as a trusted broker offering a platform with access to these dynamic markets.

Trade BTC, ETH and more with up to 1:1000 leverage as CFDs, letting you go long or short, no crypto wallet necessary.

Seize the opportunity and trade the bitcoin halving by signing up today.

 

The bottom line

The bitcoin halving event combines digital freedom with market dynamics. Investors and traders are preparing strategies, while enthusiasts eagerly anticipate this significant event.

Getting your financial plan in place for the bitcoin halving involves balancing risk and reward, contributing to the blockchain narrative.

The 2024 halving is not just an occasion; it symbolizes the past, present, and future in our digital realm. Stay updated, stay informed, and with FXTM by your side, you're ready to seize this opportunity.