Bitcoin’s Next Halving 2024: Market Impact and What to Expect | ProShares (2024)

FAQs

Bitcoin’s Next Halving 2024: Market Impact and What to Expect | ProShares? ›

The next Bitcoin halving is set for ~April 19, 2024, bringing opportunities and uncertainties for the Bitcoin community. This event, built into Bitcoin's foundational code, changes the rewards for miners and could significantly influence Bitcoin's value and role within the broader ecosystem.

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.

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.

Bitcoin, which has been synonymous with volatility, has experienced dramatic price movements since its inception in 2009, reaching highs of $73,000 by 2024. Amid the current downward trend, experts expect a bullish surge by the year-end.

Bitcoin Halving ripples through supply-demand dynamics, affecting prices and sentiment, shaping the trajectory of various altcoins in the crypto ecosystem. The 2024 Halving is expected to amplify these dynamics.

Ethereum (ETH) faces indirect consequences during Bitcoin halving events due to increased market interest and investment in cryptocurrencies. Typically, Ethereum benefits from the increased crypto market news exposure, resulting in favorable results.

Consider this: if it were universally anticipated that bitcoin's value would surge immediately following the 2024 halving, investors would likely move to acquire bitcoin before the event, driving up its price in the present rather than in the future.

“Historically, bitcoin has experienced notable price increases in the six months following each halving event. In fact, bitcoin reached new all-time highs in each four-year period between the previous halving events,” Binance CEO Richard Teng told The Block.

The Bitcoin Halving 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.

Will Bitcoin mining be profitable after halving? ›

It is important for companies dedicated to Bitcoin mining to know that the halving affects the less productive or less efficient miners. Although the production cost is the same, the reward is lower, which causes profitability to be very high.

If Wood is correct and Bitcoin does reach $3.8 million by 2030, an investment of $1,000 would be worth over $60,000. This would result in a compound annual growth rate (CAGR) of over 100%. Read Next: Bitcoin has jumped another 45% already this year – how much would you need to get started today?

You might want to sell your crypto under some specific circ*mstances. If there is a lack of blockchain development progress or a string of negative news, you might want to sell your cryptocurrency. If you've reached your investing goals or want to reallocate your holding, you might want to sell your cryptocurrency.

Our list of the next big crypto coins to explode in 2024 (x100 Bull Run) : EarthMeta ($EMT) – AI-driven Metaverse platform for decentralized governance and digital real estate. Folki ($FOLKI) – Meme coin integrating with the metaverse.

"As the halving approaches, speculation typically increases, potentially leading to heightened volatility in the bitcoin market," he says. "Investors might buy into bitcoin in anticipation of potential price increases, but there's no certainty or guarantee of that and, quite frankly, this only adds to the volatility."

Generally, halving seems to have triggered price increases in the past. According to research by crypto tax consultancy CoinLedger in the six months following the last two halvings, the value of BTC increased by 51% and 83% respectively.

Stay Informed: Keep up with the latest market trends and news. The crypto landscape can change rapidly, and staying informed will help you make educated decisions. Assess Your Investment Strategy: Consider how the halving may impact your long-term investment strategy.

The halving will likely not cause a significant movement in price on the day it happens. Part of the economic impact of the halving has likely already occurred, with investors buying bitcoin in anticipation of the event, and the aftershocks of the halving will continue for months or years afterward, experts say.

Ethereum is second only to bitcoin (BTC) in terms of market capitalisation, coming in at £372 billion compared with bitcoin's £1.1 trillion. As of 18 March 2024, one bitcoin will set you back by around £53,800 while an investor would need roughly £2,820 to buy ether.

Ethereum's chart doesn't support moving to $100k in the coming years. While ETH to $100,000 might happen at a certain point in time, it won't happen before 2030, is what we confidently can say. Here is a path to $10,000 though.

What happens when Bitcoin halving ends? ›

The amount drops in half each time a new halving takes place. For instance, after the first halving, the reward for bitcoin mining dropped to 25 BTC per block. The last halving should occur in 2140. At that point, there will be 21 million BTC in circulation and no more coins will be created.

Investors considering the long term should see two halvings over the next five years. The next one will occur sometime in 2028 and reduce mining rewards to 1.5625 Bitcoin. Think of it like this: Bitcoin mining rewards will only be a quarter of what they are today within the next five years.

Bitcoin (CRYPTO: BTC) has been on a fantastic run over the past year and a half -- it's now up by 299% since the start of 2023. That growth has slowed a bit, as the price of the crypto is down 6% from its all-time high that was reached in March.