What to Expect From the Next Bitcoin Halving
Predictions for the next Bitcoin Halving again are being made by the analysts as to how the price of Bitcoin will respond to the next Bitcoin halving which is supposedly going to happen around March 30, 2024.
The market reactions to Bitcoin halving in the past were hard to predict and the outcomes normally take time to come into effect.
Bitcoin Halving
Bitcoin halving happens every four years meaning that the block rewards paid to the miners decreases by 50% and the rewards will be cut in half (50%). With that the recent Bitcoin mined per block will cut from 6.25 to 3.125.
Coin Metrics
Currently around 900 Bitcoins are being generated on daily basis and after the next halving it will decrease to 450 Bitcoin per day.
Going back to the last halving, it went from 12.5 to 6.25 in the year 2020, there wasn't a significant reaction as was expected by a few. Bitcoin prices were a little lower by the end of the day but some observers say that this halving triggered the next bull run in a couple of few months.
The Effect of Next Halving
It's hard to predict the price effect of Bitcoin next halving that is going to happen in 2024, but what we know that the Bitcoin rewards to miners will decrease by 50% thus the price of Bitcoin has to go up to make mining profitable for the miners.
According to the wide number of people having this notion, that the price of bitcoin is related to the costs associate with it's production and it's production cost acts as a floor for the price.
Halving Happening Before
The first halving which happened back in 2012, the community divided into two camps. One camp argued that the price of Bitcoin will go 2x with the supply cutting off in half while the other side didn't expect much.
In the second halving back in 2016, the price of Bitcoin fell in start surprising many holder who expected it to go up but later the uptrend resumed and bitcoin got a massive bull run.
The third halving almost had no impact on the price initially.
Expectations
Looking at these halving events, they show that initial price impact has been insignificant. But in the medium and longer run, the prices did go up. As with the lower supply of the new coins generated and the increase in miner's cost, the price has to go up to make it profitable for them has contributed to the prices go up in these terms.
What will happen in the next halving, we don't know that, but according to the past halving history, the same is expected.
Posted Using LeoFinance Beta
