Approximately every four years, a halving occurs on the Bitcoin network. This event affects the earnings of miners — those who generate new BTC, as well as the network’s inflation rate, the issuance rate, and the price of the first cryptocurrency. Find out how halving will affect crypto miners and whether you should expect $100,000 worth of BTC afterward.
What Halving is
Halving is a halving of the reward for mining a new block on the Bitcoin network.
Halving was programmed by BTC creator Satoshi Nakamoto. The reward is reduced automatically after the next 210,000 blocks are added — approximately every four years.
| Bitcoin halvings | First halving | Second halving | Third halving |
| Date | Nov. 28, 2012 | July 9, 2016 | May 11, 2020 |
| Reduced rewards for mining | 50 to 25 BTC | 25 to 12.5 BTC | 12.5 to 6.25 BTC |
| Price for 1 BTC at the time of halving | $12,27 | $666 | $9 033 |
| Price for 1 BTC one year after halving | $1 077 | $2 635 | ~$55 800 |
The main task of halving is to control the issue of the main cryptocurrency and curb inflation. A total of 21,000,000 coins can be mined. The last block is expected to be added in 2140.
Limited supply is the main difference and advantage of bitcoin over fiat currencies. For example, the US Federal Reserve issued more than $3 trillion in 2020, raising serious concerns from investors. The possible rise in inflation of fiat currencies contributed to bitcoin becoming a reserve asset in 2020-2021. Analysts at JPMorgan Chase even said that BTC could become an alternative to gold, and in March 2021, a Bloomberg report confirmed their opinion.
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Three years after bitcoin halving
According to CoinMarketCap, bitcoin showed strong growth in the year after the third halving. In November 2020, BTC broke the all-time high of 2017, reaching $19,749. From the second half of December 2020, bitcoin set new records almost daily. In January 2021, the cost of 1 BTC reached $41,900, and on April 14, the main cryptocurrency set a new high of $64,863.
Bitcoin capitalization for the first year after halving increased more than 6 times — from $158 billion to $1 trillion. By its market value, the cryptocurrency at that time overtook such giants as Facebook ($867 billion), Tesla ($605 billion) and Alibaba ($601 billion). In addition, according to The Block, a year later, the number of active Bitcoin addresses increased from 47 million to 50 million.
What to expect from the next halving
The next halving is expected to take place in April 2024. After 840,000 blocks are mined, the reward for miners will drop from 6.25 BTC to 3.12 BTC. Further halvings will be held every 4 years, halving the reward for Bitcoin mining.
| Number of halvings | Year | Award for block |
| Fourth halving | 2024 | 3,12 BTC |
| Fifth halving | 2028 | 1,56 BTC |
| Sixth halving | 2032 | 0,78 BTC |
| Seventh Halving | 2036 | 0,39 BTC |
| Eighth Halving | 2040 | 0,195 BTC |
| Ninth Halving | 2044 | 0,0975 BTC |
| Tenth Halving | 2048 | 0,04875 BTC |
Statistics show that each halving gave Bitcoin an impulse to reach a new price maximum, but this impulse is gradually decreasing. For example, after the first halving, BTC grew by almost 10,000%, but after the second halving — by less than 3,000%, which is 70% less than the previous result. Bitcoin price growth after the third “decrease” was less than 700%, which is also less than after the second.
Given this data, the next price momentum could also be about 70% lower than the previous one. Consequently, after the halving in 2024, bitcoin’s price growth to the absolute maximum could be just over 180% and it will take the coin about 500 days to reach this mark. Thus, the next high could be reached in September-October 2025.
What’s the bottom line?
Thus, we see that after each halving, Bitcoin experienced an Upward impulse followed by corrections after which its price significantly increased. Capriole Investments founder Charles Edwards recently said, “The days of Bitcoin below $100,000 are gone!”.
It’s time to join this wagon, ready to launch toward the sky, and earn your share of the Bitcoin pie! 🍰 To do so, download the MOVO App and open positions in BTC. Becoming successful is easy, just start doing it.
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