Bitcoin’s next halving event — we will see the block reward for miners on the network drop from 6.25 to 3.125. BTC
-0.61%
— is now approaching day 100, or about 14,500 blocks, according to ’s estimates. 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 22nd.
Bitcoin halving is programmed to occur automatically every 210,000 blocks, or approximately every four years. Once hit, miners will receive 50% less in Bitcoin rewards for every block they confirm and add to the blockchain. However, they continue to earn additional transaction fees per block as normal.
There have been three halving events in Bitcoin history so far. Block reward inflation decreased from 50 BTC to 25 BTC in 2012, then to 12.5 BTC in 2016, and then to 6.25 BTC at the last halving on May 11, 2020. 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 earn only 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 uptrends in the Bitcoin market.
Last month, analysts at VanEck, the issuer of a spot Bitcoin ETF, said the event had “minimal drama,” with Bitcoin rising above $48,000 after the halving and miners experiencing little trouble thanks to a much-improved balance sheet. He said he expects it to pass by.
Number of days since Bitcoin cycle peak. Image: VanEck.
Analysts expect Bitcoin to surge past a “presidential-sized wall of worry” this US election year, hitting all-time highs by November and reaching its final cycle peak of $160,000. “We guarantee that if Bitcoin reaches $100,000 by December, Satoshi Nakamoto will be named Time Magazine’s ‘Person of the Year,’” they said.
Bitcoin was trading at $44,389 at 11 a.m. ET, according to price data from The Block.
Cycle price peak. Image: VanEck.
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