In less than 8 weeks, the Bitcoin network will experience its fourth Halving, a crucial event that halves the reward for miners, reducing the supply of new bitcoins by half. All eyes are on this date estimated at April 15 by NiceHash, one of the main mining platforms.
Nice hash estimates the Halving date as April 15, 2024
The fourth Bitcoin halving, a major event scheduled to occur every 210,000 blocks, will take place in less than 50 days, on April 15, 2024, according to estimates from NiceHash, one of the leading mining platforms in the world. This halving will halve the BTC reward granted to miners for each new validated block.
Indeed, since the launch of Bitcoin in 2009, this reward has gradually increased from 50 BTC to 25 BTC in 2012, then to 12.5 BTC in 2016 and finally to 6.25 BTC during the last halving in 2020. Consequently, after April 15, 2024, it will drop to 3.125 BTC per block.
Historically, halvings have had a significant impact on the supply and demand balance of Bitcoin. Indeed, by halving the issuance of new bitcoins, each halving mechanically accentuates the scarcity of the queen of cryptos. Furthermore, at constant demand, this drop in supply inevitably tends to increase prices, as previous halvings have demonstrated.
According to the Stock-to-Flow model, which analyzes the impact of the scarcity of BTC, this halving of production could increase its price to $450,000, with a symbolic level of $100,000 exceeded from September 2024. A forecast that is certainly optimistic, but which underlines the crucial importance of this event for price dynamics.
A new era for Bitcoin?
The halving of 2024 will undoubtedly have a major impact on the Bitcoin mining ecosystem. Indeed, seeing their income halve overnight, many miners could encounter a serious profitability problem.
Only the most efficient and effective companies, equipped with the best equipment and benefiting from the lowest energy costs, should be able to overcome this ordeal in an environment that has become significantly more competitive, unless the price of BTC increases significantly.
According to a recent report from Fidelity Digital Assets, Bitcoin miners risk suffering significant losses if the price of BTC does not exceed $80,000 before the next halving.
At the same time, with the recent emergence of Bitcoin Spot ETFs, which facilitate access to the Bitcoin market for institutional investors, this fourth halving could well mark the start of a new era. Combined with the growing adoption of digital assets by large investors and the general public, it should certainly have a notable impact on the dynamics of the BTC price.
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