Halfing Bitcoin 2024 Expected To Happen In April

Important Bitcoin events in 2024, one of which is Bitcoin Halfing. (Photo; Doc. LiveTradings)

JAKARTA - The crypto market is facing tensions over the Bitcoin spot ETF ahead of the Bitcoin Haling in 2024. The information is that the Bitcoin half-reward event for Bitcoin miners is scheduled to occur in the second quarter of 2024, around April 19 this year.

Haling Bitcoin is a process that occurs once every four years, where the number of new Bitcoins in the form of rewards for miners is reduced to half. It aims to maintain the scarcity and value of Bitcoin, which has a maximum limit of 21 million coins. Currently, there are about 19.5 million Bitcoins in circulation, and about 15 million of them are in long-term holdings.

Halfing Bitcoin has always been a moment crypto enthusiasts have been waiting for, as it has an impact on Bitcoin prices. Historical data shows that after three previous viewings, Bitcoin has seen a significant price increase, even hitting a new record high. For example, after the last halving in May 2020, the price of Bitcoin jumped from around $8,500 to more than $64.000 in April 2021.

Timo Oinonen, contributor to CryptoQuant's on-chain analysis platform, stated on X that "between the latest halling event in 2020 and the highest record of the following year, Bitcoin is experiencing an impressive 654 percent (ungu) increase". According to him, halving Bitcoin creates a deflation effect that drives Bitcoin demand and prices.

Some analysts predict that the Bitcoin 2024 halving will bring the Bitcoin price to even higher levels. One of them is Standard Chartered, which estimates that Bitcoin will reach $120,000 by the end of 2024. This prediction is based on the assumption that Bitcoin will follow the previously observed four-year cycle pattern.

However, the 2024 Haling Bitcoin also raises concerns for Bitcoin miners, who are responsible for securing and validating Bitcoin transactions. By halving, they will get a smaller block reward, which is 3.125 BTC per block, down from 6.25 BTC today. This means that their income will decrease, unless the price of Bitcoin goes up proportionally.

Data from blockchain analysis firm Glassnode shows that Bitcoin miners have reduced the amount of Bitcoin they store in their wallets. Currently, the total Bitcoin held by miners is 1.819 million BTC, down from 1.827 million BTC in early December. This suggests that they may have sold some of their Bitcoins to cover operational costs, such as electricity and equipment.

One of the famous Bitcoin miners is MicroStrategy Inc (NASDAQ: MSTR), a technology company that has the largest Bitcoin reserves among public companies. The company has purchased more than 124,000 BTC, worth more than $6 billion, since August 2020. MicroStrategy CEO Michael Saylor said he believes Bitcoin is a superior asset and will continue to increase its long-term value.

In addition to Haling Bitcoin, the crypto market is also looking forward to the potential approval of Bitcoin Spot ETF by the United States Securities and Exchange Commission (SEC). Bitcoin Spot ETF is an investment product that follows the Bitcoin price directly, without involving derivative assets or futures contracts. If approved, this product will make it easier for institutional and retail investors to invest in Bitcoin without having to buy and store it directly.