Before the halving, the cryptocurrency traded on a steady note around the $63,000 mark. Just days after the event, the bitcoin price was up 1.6%, hovering around $66,000 on Monday morning.
The much-anticipated halving event for bitcoin took place on Friday, dropping the issuance rate of new bitcoin to roughly 3.125 every ten minutes. After the halving, the rate of issuance of new bitcoin as well as the rewards for successful bitcoin miners were cut in half.
Just days after bitcoin’s halving, the cryptocurrency was quoted at $65,125 levels on Monday (April 22). The maximum supply for Bitcoin remains capped at $21 million, while current circulating supply stood at 19.69 million, underlying the limited scope for fresh bitcoins.
Bitcoin has gained as much as 54% so far this calendar year, and has zoomed 136% since in the last 52 weeks. The present market capitalisation of Bitcoin stands at $1.28 trillion.
What happened at the halving?
After Friday’s halving, the rate of new bitcoin created roughly every 10 minutes is 3.125.These halving events take place after every 210,000 blocks are validated or roughly every four years. These halvings were baked into the network’s design when it was originally launched in January 2009, as a way to reduce the rate at which bitcoins are created.
After the halving, the block reward or subsidy associated with validating each new block of transactions on the bitcoin network is cut in half. The block subsidy is the newly-created bitcoin that is included in the block as a reward to the associated miner. So in effect, the block subsidy for successful miners is now 3.125 bitcoin.
What will happen next?
Despite expectations that the halving would stimulate the bull market, market analysts, including those from JPMorgan Chase & Co. and Deutsche Bank AG, suggested that the event was already factored into the market.
“While bitcoin’s price remained relatively stable post-halving, transaction fees on the network surged, signalling increased activity,” noted Kok Kee Chong, CEO of AsiaNext, a Singapore-based digital-asset exchange.
Each halving diminishes the dilutive impact of mining, with the upcoming cycle expected to generate only 3.3% of new bitcoin supply, a stark contrast to previous cycles.
However, bullish sentiments towards bitcoin may face headwinds from macroeconomic factors such as Federal Reserve signals and geopolitical tensions. Edward Chin, co-founder of Parataxis Capital, predicts market choppiness in the near term, with ETF fund flows remaining a key price driver.
While the halving’s primary impact is anticipated to affect bitcoin mining companies rather than the cryptocurrency’s price directly, analysts suggest a consolidation within the sector, with publicly listed miners poised to gain market share due to improved access to funding.
As bitcoin’s blockchain has successfully weathered past halvings without disruption, attention now turns to the next halving in 2028, where the reward will be further reduced. With 64 expected halvings before reaching the 21 million cap, miners face a future reliant on transaction fees as a primary revenue source.
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FAQs
After the halving, the rate of issuance of new bitcoin as well as the rewards for successful bitcoin miners are cut in half. There can only be 21 million bitcoin, and fewer new tokens entering circulation could impact bitcoin prices. That's why the halving is watched closely by miners and investors alike.
How does the Bitcoin halving affect investors? ›
The Bitcoin halving refers to an event that takes place about every four years and reduces the block reward by 50%. This lowers the supply of bitcoins entering the market, which increases scarcity and can act to raise its price if market conditions remain the same.
What is the result of Bitcoin halving? ›
The 2016 halving reduced the block reward to 12.5 BTC. In May 2020, it further decreased to 6.25 BTC. The 2024 halving reduced the reward to 3.125 BTC.
Will Bitcoin go up or down after halving? ›
What will the impact be on the bitcoin price? Halving reduces the supply of new bitcoins, which should in theory increase the price. It is an economic axiom that if demand for an asset remains stable while its supply decreases, its price should go up.
What will happen to Bitcoin miners? ›
The End of Bitcoin Mining Rewards
However, once the maximum supply of 21 million bitcoins is reached, these block rewards will cease. Miners will then solely rely on transaction fees as their compensation for validating transactions and securing the network.
Do miners go up after halving? ›
What happens to miners after the halving? In a halving event, the reward paid out for mining a new block of Bitcoin drops by one-half. That directly affects Bitcoin miners, because their primary revenue source has just been reduced by one-half.
What happens to the crypto market after Bitcoin halving? ›
When Bitcoin halves, the reward given to the contributors securing the network is reduced by 50%, directly impacting the rate at which new Bitcoins are introduced into circulation. And because there are only 21 million bitcoins and the halving makes fewer of them, the halving contributes to making bitcoins more scarce.
Which cryptos will benefit from Bitcoin halving? ›
Of our potential list of five cryptocurrencies, three particularly stand out: Ethereum, Solana, and Polkadot. For example, Ethereum has a 0.82 correlation with Bitcoin, Polkadot has a 0.73 correlation, and Solana has a 0.67 correlation.
What does the Bitcoin halving mean for miners? ›
Bitcoin halving is when the reward for bitcoin mining is cut in half. Halving takes place every four years. The next halving is expected to occur sometime in 2028. The halving policy was written into bitcoin's mining algorithm to counteract inflation by maintaining scarcity.
Will Bitcoin halving affect other coins? ›
When its supply is reduced through halving, and if the demand stays constant or increases, we often see a ripple effect on the prices of other cryptocurrencies.
So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.
How many Bitcoin will there be after halving? ›
Future Bitcoin halving dates
Fifth halving and beyond: Future halvings will continue at intervals of approximately 210,000 blocks, or roughly every four years, reducing the block reward until the maximum supply of 21 million Bitcoins has been reached. This is estimated to happen in the year 2140.
Should I invest in Bitcoin before halving? ›
If Bitcoin starts to go on another post-halving rally, this number could spike even more, leading to an even higher Bitcoin price, leading to... you get the idea. This cycle could easily last 12 months or more. So, yes, you should be buying Bitcoin ahead of the halving.
How much will 1 Bitcoin be worth in 2025? ›
Bitcoin (BTC) Price Prediction 2030
| Year | Price |
|---|
| 2025 | $ 62,518.99 |
| 2026 | $ 65,644.94 |
| 2027 | $ 68,927.18 |
| 2030 | $ 79,791.83 |
1 more rowThe impact of the Bitcoin halving is also noteworthy, especially in the formation of supercycle bubbles in 2021, which affected altcoins such as Ethereum. The implications of this extend to portfolio management advice.
How much does it cost to mine 1 Bitcoin after halving? ›
It currently costs roughly $10,000 to $15,000 to mine a bitcoin, and some estimate that these costs will double and may reach as high as $40,000 after the 2024 halving. Bitcoin miners require substantial capital investment to purchase and maintain mining equipment and the facilities to house them.
Will bitcoin mining disappear? ›
Mining will never end. As the time goes bitcoin price keep increasing and after year 2140 transaction fees is what miners will take and in year 2140 that fees will be more valuable because at that time bitcoin price will be pretty high.
How many bitcoins are mined a day after halving? ›
Current block reward, as we have already mentioned, is 3.125 Bitcoins per block as a result of the 2024 Bitcoin halving. On average, a new block is mined approximately every 10 minutes. To calculate the daily mining rate: 144 blocks are mined per day (24 hours divided by 10 minutes).
What is the best Bitcoin miner after halving? ›
After the latest Halving, the most profitable Bitmain Antminer model is the S21 Series. This model can still generate significant profits, offering a monthly income of at least $100. In contrast, older models like the S19 Series are not profitable under current conditions unless Bitcoin's price significantly increases.
