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Countdown to the 4th Bitcoin halving in 2024

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Third halving2020/05/12Block height630000
Fourth halvingAround 2024/04/20Next halving block height840000
Fourth halvingAround2024/04/20Next halving block height840000
Current block height840000(100%)
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What is Bitcoin halving?

With every 210,000 Bitcoin blocks mined, the block reward is cut in half. The occurs approximately every four years, with the fourth halving estimated to unfold around April 23, 2024 at a block height of 840,000.
Each halving event reduces the rewards for block miners. Initially the block reward was 50 BTC, but has been reduced to the current level of 6.25 BTC. The halving in 2024 will further demote it to 3.125 BTC.
Bitcoin halving has a huge impact on the price of Bitcoin as it is a mechanism to periodically reduce the number of new coins issued with each new block and slow down the fresh supply of Bitcoins. Every Bitcoin halving event has historically been tied closely to the crypto bull market.

Bitcoin halving events and market trends

To date, Bitcoin's block reward has been halved three times, leading to three Bitcoin halving cycles in the industry.
First Bitcoin halving cycle:November 28, 2012 – July 10, 2016: During this cycle, there were two Bitcoin rallies in April and November 2013, where Bitcoin surged 2300% from US$12 to US$288 and 1782% from US$66 to US$1242, respectively.
Second Bitcoin halving cycle:July 10, 2016 – May 12, 2020: During this cycle, there was one post-halving rally in December 2017 where Bitcoin skyrocketed 4158% from US$648 to US$19,800.
Third Bitcoin halving cycle:May 12, 2020 till now: There has been two rallies since the last halving. Bitcoin spiked 693% from US$8181 to US$64,895 in April, 2021 and rose 135% from US$29,296 to US$69,000 later that year in November.
The current market price of Bitget is $66657.06, -0.21% in the past 24 hours and +4.13% in the past seven days. For more details, head toBitcoin price data

Block rewards and Bitcoin fresh supply after each halving

The halving mechanism was coined by Satoshi Nakamoto in the Bitcoin whitepaper “A Peer-to-Peer Electronic Cash System”.
It is stipulated that Bitcoin halves as every 210,000 blocks are mined, until the whole supply of 21 million Bitcoins are mined.
Bitcoin halved at the block heights of 210,000, 420,000, and 630,000. The current block height is 818,670 and the fourth halving is expected to take place when the height reaches 840,000, reducing the bock reward from the current level of 6.25 BTC to 3.125 BTC.
Bitcoin mining startedFirst halvingSecond halvingThird halvingFourth halving
Start date2009/1/32012/11/282016/7/102020/5/122024/4/?
Interval (days)142613201403
Post-halving block reward50 BTC25 BTC12.5 BTC6.25 BTC3.125 BTC
Halving block height210,000420,000630,000840,000
Bitcoin circulation at halving10,500,00015,750,00018,375,00019,687,500
Percentage of Bitcoin mined at halving50.00%75.00%87.50%93.80%
Percentage of Bitcoin unmined at halving50.00%25.00%12.50%6.30%
Bitcoin annual inflation rate12.50%8.30%4.17%1.79%0.83%

Price impact of Bitcoin halvings

Every Bitcoin halving event has historically been tied closely to the crypto bull market. We witnessed Bitcoin soar to a new all-time high within 6–18 months after a halving event. Inevitably, the industry always keeps a close eye on the impact of halving.
First halvingSecond halvingThird halvingFourth halving
Bitcoin halving date2012/11/282016/7/102020/5/112024/4/?
Bitcoin price at halving$12$648$8,181?
Post-halving high$1,242$19,800$69,000?
Post-halving gain10250.00%2956.00%743.00%?
Lowest during halving$12$465$8,181?
Biggest gain post-halving10250.00%4158.00%743.00%?
Date of post-halving high2013/11/302017/12/172021/11/10?
Days from halving to post-halving high368527549?

Will the next Bitcoin halving lead to a new bullish run?

Halving has a huge impactLess so
YesNo
Supporting
1
All three halving events in the history of Bitcoin were followed by a price surge, which adds to the evidence that the halving will indeed have a positive impact on the price of Bitcoin.
2
In terms of demand, the BRC-20 boom seems to have brought the Bitcoin ecosystem to a new level of popularity.Bitcoin, once viewed as "digital gold," has served as a store of value. Now, with a richer ecosystem, the demand for Bitcoin is expected to increase further.Furthermore, the surge in institutional investments has spurred a growing number of transaction requests, consequently driving an upswing in the demand for Bitcoin.
3
In terms of supply, Bitcoin has a hard cap of 21 million by design. The halving takes place around every four years to curb inflation and control Bitcoin supply.With such low supply elasticity, an increase in demand coupled with a decrease in supply will likely lead to a price rise.
Disagreeing
1
Bitcoin halving is not a direct cause of bull markets. The first bull market was driven by a strong demand for anonymous payments. The second one derived from the ICO boom as funds poured in. The third one was rooted in the development of blockchain industry applications during the DeFi Summer. The fourth is more likely to come from the impetus of the explosive development of blockchain industry applications.
2
Price fluctuation is determined by supply and demand in the long run. The reason behind a Bitcoin price increase is either the growth of demand or the shortage of supply. The percentage of unmined Bitcoins is quite small, and halving could only have limited impact on the supply. Therefore, halving is not a major factor for driving up the price of Bitcoin.
3
If we take a closer look at Bitcoin's past bull and bear markets, it can be observed that macro liquidity, including the monetary policies and liquidity conditions of global central banks, plays a more significant role in influencing the Bitcoin market.Easing monetary policy and abundant liquidity are more likely to drive the price of Bitcoin higher, while tighter monetary policy and limited liquidity could put downward pressure on the price.

FAQ

1. What is Bitcoin halving?

Bitcoin halving refers to the periodic reduction of the number of new coins issued with each new block.
This process is designed to control the issuance of new Bitcoins and increase its scarcity.
In Bitcoin's early stages, miners were offered a 50 BTC reward for each successful validation of a block.The first Bitcoin halving occurred in 2012, bringing down the reward to 25 BTC.The second Bitcoin halving in 2016 reduced the block reward further to 12.5 BTC.The third Bitcoin halving in 2020 reduced the block reward even further to 6.25 BTC.Following this trend, the fourth halving will demote the block reward to 3.125 BTC, the fifth halving to 1.5625 BTC, and so on.
The total supply of Bitcoin is 21 million,a hard cap determined by Bitcoin's source code.The limited supply of Bitcoin and the reward halving constitute a special yet effective economic mechanism that strongly supports Bitcoin's value axiom.
Bitcoin halving slows down the supply issuance by cutting the block reward, introducing predictable inflation and scarcity to Bitcoin.

2. How does Bitcoin halving affect its miners?

Essentially, the halving cuts the BTC rewards given to miners in half.
When the BTC price and investment costs remain unchanged, the reduction of mining rewards lengthens the return-on-investment cycle. This will more or less affect the behavior of Bitcoin miners.
The tremendous operating costs and the high volatility of Bitcoin puts miners in vastly different financial situations. This significant dip in rewards introduces a set of complications that miners, particularly those burdened by high energy expenses and equipped with less efficient machinery, must navigate.Such financial challenges often catalyze changes in the dynamics of the mining landscape.One possible outcome could be that miners with smaller operations or less sophisticated equipment might find themselves edged out of the increasingly competitive market.In stark contrast, lucrative miners boasting larger, better-resourced operations are likely to remain resilient and continue witnessing growth.To maintain viability in the face of these consequential reductions, Bitcoin miners need to evaluate and reassess their post-halving operations critically.It is also necessary for them to recalibrate their strategies to adapt to these new market conditions.
Bitcoin has proven the strength of its tokenomics with prior halving events.Some miners have faith in the rising price of Bitcoin, sustaining their mining business and securing the Bitcoin blockchain.
Some miners are convinced that Bitcoin mining is sustainable as halving slows down Bitcoin issuance, creates scarcity, and drives up the value of Bitcoin, which in turn will incentivize more miners to participate in protecting the blockchain.

3. Why is Bitcoin halving significant?

Bitcoin halving is significant in terms of economics, sustainability, and ecosystem development.
From an economic perspective, the Bitcoin halving is a significant process that effectively slows down how rapidly new bitcoins enter circulation, constricting the overall supply chain. This constraint invariably impacts the equilibriums of supply and demand for this digital currency, with potential repercussions on its market value. Basic economic principles dictate that if supply decreases while demand remains constant or even increases, price increases.Bitcoin halving is a significant event that highlights the deflationary characteristic of this digital asset for long-term investors. This occurrence essentially underlines Bitcoin’s potential to serve as a value storage medium.
Sustainability-wise, Bitcoin miners are rewarded for validating blocks and protecting the Bitcoin network from malicious attacks.Halving maintains the long-lasting production of Bitcoin, thus maintaining the sustainability of Bitcoin mining and the operation of the Bitcoin network in the long run.
Regarding ecosystem development, Bitcoin halving drives up the price of Bitcoin, which attracts public attention as well as huge amounts of funds and a large number of talent to the sector. The blockchain ecosystem continues to spiral upwards.
People are coming to realize that Bitcoin halving transcends a mere technical amendment.It is also the foundation of the cryptocurrency world, profoundly shaping and influencing discussions and the future direction of Bitcoin.Every halving event doesn't happen out of thin air—it stimulates discussions about the intrinsic value of Bitcoin, its position in a broader financial context, and its potential to completely transform the landscape of digital finance.

4. When was the last Bitcoin halving?

The last Bitcoin halving took place on May 11, 2020 at a block height of 630,000.The block reward was reduced from 12.5 BTC to 6.25 BTC.

5. When is the next Bitcoin halving?

The next Bitcoin halving is expected to take place around April 23, 2024, at a block height of 840,000.By then, Bitcoin's block reward will drop to 3.125 BTC.

6. How will the halving affect the price of Bitcoin?

It is still unclear what might happen to the price of Bitcoin after the next halving.Many believe that the price will follow a similar pattern to the previous three halvings, rising after the event itself as the supply of new coins is constrained.
The prior three Bitcoin halving events have historically been associated with significant price increases. Bitcoin's price surged by 8,450% in 2012 after the first halving, increased by 290% in 2016 after the second halving, and rose by 560% in 2020 after the third halving.
For investors, halving means a reduction in the frequency of new Bitcoin generated and a decreased inclination for miners to sell.Historical data indicates that the anticipated scarcity has a positive impact on investor psychology.The anticipation of an upward trend may serve as a catalyst to buy more Bitcoin.
However, any price increase will depend on how demand for Bitcoins shapes up over the course of the halving. The future trends in Bitcoin demand and price depend on a variety of factors.

7. Will Bitcoin halving have an impact on altcoins?

Bitcoin halving often ripples through the broader cryptocurrency market, including altcoins.Investors may be more optimistic about the growth potential of other cryptocurrencies.This enthusiasm could increase the investment in altcoins and drive up their prices.Moreover, the decrease in Bitcoin mining incentives might lead some miners to choose alternative coins with higher rewards.

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