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BTC halving is expected to be completed on April 20, 2024, reducing the current block reward from 6.25 BTC to 3.125 BTC. With 4,399 blocks remaining, this event is a significant milestone that typically accompanies certain market fluctuations. As the halving date approaches, investors may increase their attention and investment in BTC.
The BTC halving event holds great significance for the entire cryptocurrency market. It serves as a reminder of the scarcity of BTC supply and sometimes acts as a catalyst for price increases.
What is Bitcoin halving? Bitcoin halving is a pre-programmed event scheduled to occur every four years or every 210,000 mined blocks on the Layer 1 blockchain. This year, the upcoming halving will occur at block height 840,000. During halving, the rewards for Bitcoin miners who validate transactions and secure the network are halved.
The reduction in mining rewards is aimed at controlling the circulation of newly issued BTC while ensuring that the total supply of Bitcoin remains within the preset limit of 21 million coins. The first halving occurred on November 28, 2012, four years after the protocol's launch in January 2009, reducing the block reward from 50 BTC per block to 25 BTC.
So far, the network has undergone four halvings, including the upcoming one next month. During the event, miners will receive a reward of 3.125 BTC per block, compared to the 6.25 BTC reward in 2020.
Historical Impact of Halving on Bitcoin Prices
Historically, Bitcoin halving events have had a significant impact on BTC prices. In the months leading up to halving, speculation and expectations in the market increase, potentially driving up the price of Bitcoin. After halving, there is typically a period of price consolidation, followed by a bull market rally that often drives Bitcoin prices to new all-time highs (ATH).
For example, following the last halving in 2020, the bull market in 2021 saw BTC prices approaching $70,000, with a market capitalization reaching $1 trillion. The industry's second-largest digital asset, Ethereum (Ether), reached a historic high of $4,379. Other alternative cryptocurrencies (altcoins) also gained popularity, including meme coins. The total market value of the entire crypto industry surpassed $3 trillion for the first time in emerging markets' history.
This surge attracted many new crypto enthusiasts to the industry, leading to widespread adoption of BTC. Countries like El Salvador even declared cryptocurrencies as legal tender in September 2021, becoming the first to do so.
In the same year, Elon Musk joined the ranks of cryptocurrency adopters, embracing Dogecoin (DOGE). Similarly, in 2021, as artist Mike Winkelmann, also known as Beeple, turned his artwork into NFTs, interest in the non-fungible token (NFT) space skyrocketed. His digital artwork "Everydays: The First 5000 Days" sold for $69 million.
The cumulative trading volume of the US Spot Bitcoin ETF surpassed $150 billion, once again demonstrating the continuous growth of the cryptocurrency market and investors' strong demand for Bitcoin ETFs. Since March 8, the cumulative trading volume has increased by $50 billion, reaching $151.4 billion at the close of yesterday, indicating growing investor interest in cryptocurrency ETFs.
However, at the same time, Grayscale GBTC saw a net outflow of $386 million yesterday, indicating some volatility in the market and investor uncertainty. Despite the increasing trading volume of the US Spot Bitcoin ETF, some investors appear to be adjusting their portfolios or seeking other investment opportunities.
BTC
The crypto market's pace is too fast, and $60,775 may be the bottom of this round! Yesterday, there was a strong bullish candlestick with increased trading volume, basically recovering the previous day's decline, indicating significant strength. Currently, it is at the position of the 20-day moving average, and is currently suppressed by the 10-day moving average. The daily MACD is above the zero axis, indicating relative strength. First, short-term rebound may be selected; second, choose to retest the low of 60,775 without breaking through; finally, oscillate upwards and create new highs. For long-term holders, holding coins without moving is sufficient. Strong resistance: near 68,800;
ETH
Currently above the 30-day moving average, the short-term trend is stronger than Bitcoin, with a strong demand for rebound. After the rebound, a retest of the low may occur, and finally choose to oscillate upwards and create new highs. Strong resistance: near 3575;
Altcoins
Since hitting bottom yesterday, the overall rebound amplitude has been large, and this round's bottom may have formed. At this stage, the risk has been basically eliminated, and it is possible to start gradually laying out high-quality tracks. The overall market may undergo a retest confirmation in the next few days. If there is another opportunity to provide cheap chips, it will be an excellent time to lay out altcoins, and finally welcome the violent rise of the bull market main uptrend.
The last month!
The upcoming Bitcoin halving event is expected to be a major driver of Bitcoin price appreciation, ushering in a parabolic uptrend. According to CoinMarketCap's halving countdown, there are less than 31 days until Bitcoin's next halving event.
There are about 4,450 blocks left, and Bitcoin's fourth halving is expected to occur on April 20th, reducing miner block rewards by 50% from 6.25 BTC to 3.125 BTC.
Historically, Bitcoin's halving of the supply has been associated with an increase in Bitcoin prices. Halving always occurs just before significant bull markets in the Bitcoin market.
Four Stages of the Bitcoin Halving Cycle
Bitcoin Halving Cycle Stage One: Pre-halving Rally
About 60 days before the Bitcoin halving, there will be a rebound trend. This round of rebound appeared earlier than expected, and a few days earlier than expected. Currently, Bitcoin is transitioning from the pre-halving rebound stage to the pre-halving correction stage.
Bitcoin Halving Cycle Stage Two: Pre-halving Correction
In the 28 to 14 days before halving, Bitcoin enters the pre-halving correction stage. The previous correction ranges were as follows:
2016: The pre-halving correction ranged |
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Post time 30-3-2024 20:39:59