- The next Bitcoin halving will occur around April 23, 2024, reducing the issuance rate by 50% to around 40,000 BTC per quarter.
- Past halvings have preceded strong bull runs, with Bitcoin seeing 400%+ returns in the year after previous events.
- Investors have been accumulating Bitcoin ahead of the halving, with illiquid supply growth far outpacing issuance. The halving could spark the next leg up.
The Bitcoin halving is one of the most anticipated events in the crypto calendar. Occurring every 210,000 blocks, the halving reduces the rate of new Bitcoin issuance by 50%. As we approach the fourth halving, set to take place in 2024, here is what you need to know about this momentous occasion.
When is the Next Bitcoin Halving?
The Bitcoin network automatically adjusts the rate of block production to aim for a new block every 10 minutes. This means the exact date of the halving is uncertain. However, based on current estimates, the next halving will occur around April 23, 2024. This would be approximately 158 days from now.
Historical Price Impact
Past halvings have preceded strong bull runs in Bitcoin’s price. In the 365 days following previous halvings, Bitcoin has seen returns of over 400%, according to analyst Checkmate. However, past performance does not guarantee future results.
Current Investor Activity
According to Glassnode data, investors have been accumulating Bitcoin ahead of the halving. The pace of illiquid supply growth exceeds the current rate of issuance by 22x. This indicates strong buy-side activity leading up to the reduced issuance.
Reduced Issuance Rate
Following the halving, the Bitcoin issuance rate will drop from the current 81,000 BTC per quarter to around 40,000 BTC per quarter. With investors accumulating Bitcoin faster than it is currently being issued, the halving could put further upwards pressure on Bitcoin’s price.
The upcoming Bitcoin halving will be a historic moment for the cryptocurrency. With buy-side activity ramping up and new supply getting cut in half, the halving may spark the next leg up in Bitcoin’s market cycle. As the predetermined event approaches, Bitcoin investors and enthusiasts will be closely monitoring its impact.