Bitcoin Halving 2024 - A historic event that has changed the map of the cryptocurrency market

The Bitcoin halving event in April 2024 has become a significant milestone in cryptocurrency history, capturing the full attention of the global Bitcoin community. As block rewards decrease from 6.25 BTC to 3.125 BTC, the market has experienced notable volatility. Currently, Bitcoin is trading at $67,840, reflecting the complex impacts that the halving has on the cryptocurrency ecosystem.

Bitcoin Halving 2024: Event Highlights

The fourth Bitcoin halving officially occurred on April 20, 2024, at block height 840,000, marking the second time the reward has been cut in half. Unlike previous halvings, the 2024 event took place amid increasing institutional demand and a rapidly expanding Bitcoin ecosystem.

Historical data shows that each halving marks a new phase in Bitcoin’s market cycle. The first halving in 2012 pushed prices from $12.35 to $127.00 over 150 days. The second in 2016 saw an increase from $650.63 to $758.81. The third halving in 2020 triggered a price surge from $8,740.00 to $10,943.00—clear evidence of how halving events influence price formation.

How Bitcoin Halving Works and Its Economic Significance

Bitcoin halving is a mechanism embedded in Bitcoin’s code by Satoshi Nakamoto to control inflation by slowing the supply of new bitcoins. This event occurs automatically every 210,000 blocks mined, approximately every four years.

When Bitcoin was launched in 2009, the mining reward for one block was 50 BTC. After three halvings, this reward has decreased to 6.25 BTC, and following the 2024 halving, it stands at 3.125 BTC. This system mimics the scarcity of precious metals like gold by reducing the rate of new Bitcoin creation.

Bitcoin’s Proof of Work (PoW) mechanism requires miners to solve complex mathematical problems to add new blocks to the blockchain. This process consumes significant energy but ensures transaction security and legitimacy. In contrast, Ethereum transitioned to a Proof of Stake (PoS) model in September 2022, using validators instead of miners—a more energy-efficient approach.

As of February 2026, the circulating supply of BTC exceeds 19.99 million out of the total 21 million. Halving events continue to extend the mining timeline, with all 21 million BTC expected to be mined around 2140.

How Does Bitcoin Halving Affect Miners?

Halving directly impacts mining profitability by reducing the rewards miners receive. After the 2024 halving, miners’ income is cut in half—a significant challenge for mining operations.

While this creates short-term pressure, long-term strategic miners often continue operating, hoping that Bitcoin’s price will rise enough to offset the reduced rewards. Data indicates that mining difficulty has remained relatively stable post-halving because the high costs of computational power prevent miners from shutting down without substantial losses.

However, less efficient miners may be forced to exit the market, leading to increased concentration among larger mining pools. From a security perspective, this could pose a 51% attack risk, although the current size of the Bitcoin network is large enough to resist such centralization threats.

How Does Bitcoin Halving Impact Investors?

Unlike miners, investors typically view halving as an opportunity for profit. The event reduces the supply of new Bitcoin, creating scarcity that economic theory suggests could drive prices higher if demand remains strong.

Historical data shows that each halving cycle is associated with distinct market phases:

Accumulation Phase (13-22 months): Bitcoin trades sideways or slightly up as savvy investors begin accumulating.

Bull Run Phase (10-15 months): After accumulation, markets often experience strong upward momentum, with minor corrections.

Correction Phase (300-600 days): All bullish runs following halving end with a correction or retracement.

The most recent cycle started from a low of $3,300 in 2020, surged to over $69,000 during the bull market, then retraced more than 77%. Based on this pattern, the 2024 halving could trigger a new bull cycle, though the exact timing remains uncertain.

Price Predictions After the 2024 Halving

Various models offer relatively optimistic forecasts. The Stock-to-Flow model suggests Bitcoin could reach new all-time highs. However, it’s important to note that previous bull runs have seen diminishing percentage gains, so overly high expectations may be unrealistic.

Some leading analysts’ forecasts include:

• Pantera Capital: Near $150,000 in the next four-year cycle.
• Standard Chartered: Up to $120,000.
• Adam Back (CEO of Blockstream): Over $100,000.
• Cathie Wood (CEO of Ark Invest): $1.5 million by 2030.
• Jesse Myers and Robert Kiyosaki: Expecting Bitcoin to surpass $100,000.

These projections largely rely on historical trends and increasing institutional interest, especially after the approval of spot Bitcoin ETFs.

How Bitcoin Halving Affects Altcoins

As the largest cryptocurrency by market cap, Bitcoin often leads price trends in the broader altcoin market. When Bitcoin experiences volatility due to halving, other assets like Ethereum tend to follow.

Strategy expert Michaël van de Poppe notes that the optimal time to invest in altcoins is 8-10 months before a Bitcoin halving, when market sentiment is at its lowest. Historical data shows ETH/USD and ETH/BTC pairs often bottom out approximately 252 days before the halving.

Trading Strategies for Bitcoin Halving on Platforms

As the halving approaches, traders can employ various strategies to maximize gains:

HODL: The simplest approach—holding Bitcoin through halving cycles to benefit from long-term appreciation.

Dollar-Cost Averaging (DCA): Investing fixed amounts periodically to reduce the impact of volatility.

Automated Trading: Using bots like Futures Grid, Spot Grid, or Infinity Grid to automate trading activities, especially useful in volatile markets.

Swing Trading: Actively buying low and selling high around the halving event.

Margin/Futures Trading: For high-risk traders, futures allow leveraging volatility but can amplify losses.

Earning Crypto Income: Investors can generate passive income via staking, savings accounts, or lending, in addition to trading.

Frequently Asked Questions About Bitcoin Halving

Can Bitcoin halving be predicted?
Yes, since it follows a fixed schedule—every 210,000 blocks or roughly four years.

When was the most recent halving?
The fourth halving occurred in April 2024, reducing rewards from 6.25 to 3.125 BTC. The third was in May 2020, the second in July 2016, and the first in November 2012.

What are the long-term effects of halving on price?
Theoretically, halving reduces new supply, which can increase prices if demand remains steady. However, past performance does not guarantee future results, as many factors influence Bitcoin’s price.

Does halving affect transaction speed or fees?
Not directly. Transaction speed and fees are more affected by network congestion and mining difficulty.

What happens when all 21 million Bitcoins are mined?
No new Bitcoins will be created; miners will rely solely on transaction fees for revenue.

Are there other cryptocurrencies with halving events?
Yes, some like Litecoin also have halving mechanisms.

Is Bitcoin halving good or bad?
It depends on perspective. For miners, it can create short-term pressure; for long-term investors, it often presents buying opportunities. Fundamentally, halving is a designed mechanism to maintain Bitcoin’s value and scarcity over time.