News
Bitcoin Halving Is Coming. What Does It Mean for Investors?
Bitcoin’s rollercoaster has had more peaks and valleys than usual in the past month. The price has risen to just under $72,000 and hit a low of $60,617, in a series of moves that have caused a whiplash. Normally, this would have been erased Intrinsic volatility of cryptocurrenciesbut this time there is a more solid reason: the Halving.
It sounds like the name of a rather graphic horror movie, but the halving is actually an event that occurs every four years in the cryptocurrency industry. And it is often the catalyst for large gains.
Whether you actively invest in Bitcoin, own one ETFs that track the price of Bitcoin or are simply curious about the world of cryptocurrencies, the halving can be an area of confusion. Here’s what you need to know about the event.
What is halving?
A halving, in essence, is an event that occurs every four years, in which the number of new coins in circulation is reduced by 50%. This creates a scarcity because it reduces the rate at which new Bitcoins can enter the market.
Bitcoins come into circulation thanks to miners, who use specialized computers to discover block rewards, which then become part of the blockchain. In 2009, miners worked to discover 50 Bitcoins every 10 minutes. Since the last halving, that number has dropped to 6.25 Bitcoins every 10 minutes. After this event, that number will drop to 3.125 Bitcoins every 10 minutes.
When will the halving occur?
No one knows exactly when the halving will happen, at least in terms of day and time. The best bet, as predicted by those who follow this kind of thing closely, is between April 19 and 20. Halvings happen after 210,000 Bitcoins have been mined. Bitaps Website tracks the number of Bitcoins in circulation. Once it hits 840,000, the 2024 halving will occur. (As of 2 p.m. ET, the number was 839,666, putting the event on track for a Friday Night Goal)
When did the last halving occur?
The third and most recent Bitcoin halving took place on May 11, 2020.
Will the halving cause the price of Bitcoin to rise?
The 2020 halving didn’t cause any major price fluctuations, at least not immediately. Around December of that year, however, the first major price surge in Bitcoin began, with prices jumping from under $9,000 at the halving. at nearly $12,000 100 days later—and $60,000 by March 2021.
This time, however, Bitcoin has reached a new record before the halving occurred (largely due to the launch of Bitcoin ETFs, which increased awareness and demand). Crypto enthusiasts are hoping that awareness will increase further, as the hype surrounding this year’s halving keeps cryptocurrencies in the spotlight.
How many Bitcoins are in circulation today?
As of December 18, 2023, 19.57 million bitcoins have been mined.
How many more Bitcoins can be mined?
The total supply of Bitcoin is capped at 21 million, which leaves about 1.45 million to be mined. It will take a while for all of these to hit the market, though. With successive halvings, the final Bitcoin is not expected to be mined. until 2140although it might happen a little earlier.
Recognize your technological innovation by applying for this year’s competition The next big tech awards! Deadline for nominations extended: tonight, Friday, July 19.