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According to estimates, the next halving event is just 50 days away, or about 7,300 blocks away. CoinGecko and OKLink.
The estimated countdown is based on Bitcoin’s average block creation time of 10 minutes, and as things stand, the potential date is set at April 21st. In the Bitcoin halving event, rewards for miners on the network will be reduced from 6.25 BTC to 3.125 BTC per block.
Bitcoin halving is programmed to occur automatically every 210,000 blocks, or approximately every four years. When a halving event occurs, miners receive 50% less Bitcoin as a reward for every block of transactions they mine and add to the blockchain. However, they continue to earn additional transaction fees for each block mined normally.
There have been three halving events in Bitcoin history. Block reward inflation was reduced from 50BTC to 25BTC in 2012, then to 12.5BTC in 2016, and then to 6.25BTC at the last halving on May 11, 2020. In the long run, there are only 21 million Bitcoins in existence. The halving event will continue until the last Bitcoin is expected to be mined around 2140. After that, miners only earn money from transaction fees.
Bitcoin inflation over time. Image: bitcoinblockhalf.com.
Bitcoin Halving Impact on Markets
Historically, Bitcoin halvings have been associated with significant fluctuations in the price of the cryptocurrency. Although not a direct cause and effect relationship, these events often occurred prior to significant upturns in the Bitcoin market.
This time, the Bitcoin price is closer to its all-time high before the halving than ever before. It hit a record high of $64,000 earlier this week, putting it within 10% of the November 2021 record of about $69,000 following the launch of spot Bitcoin. January US exchange traded fund.
“$60,000 BTC is just the latest milestone in this new cryptocurrency bull market. But what’s different is that the new buyers represent a broader group of traditional financial institutions than in previous cycles,” Nathan McCauley, co-founder and CEO of institutional cryptocurrency platform Anchorage Digital, told The Block.
“After the SEC approved it and the world’s leading asset managers navigated the complexities of issuing a new financial product like a spot Bitcoin ETF, institutions that had been sitting on the sidelines are taking action and driving this cycle,” McCauley added. “With mature market infrastructure, new investment vehicles, and total market capitalization reaching $2 trillion, the highest in two years, this is just the beginning of the bull market. This is something we have been preparing for for years. And we know the best is yet to come.”
According to The Block’s price page, Bitcoin is currently trading at $61,924. Bitcoin rose nearly 45% in February, its biggest monthly gain since December 2020.
BTC/USD price chart. Image: Block/TradingView.
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