There’s a lot of excitement in the air surrounding the upcoming Bitcoin halving on April 20, 2024 – in no small part due to the potential monetary gains that can come of it. Halvings may be rare, but they have a huge impact on Bitcoin, and let’s take a look at why that is. First, we’ll need to understand what exactly a Bitcoin halving is and take a look at halvings in the past.
What is a “halving” in cryptocurrency?
In the simplest terms, when a Bitcoin halving occurs, it means the amount of bitcoin a miner receives for creating a block in the Bitcoin blockchain is suddenly cut in half. Bitcoins were specifically designed to halve every four years as a means of continuously limiting the new supply of bitcoins entering the market. With a finite supply of 21 million Bitcoins to be mined, slowing the rate of introduction to the market is important.
It’s also one of the measures in place to ensure that Bitcoin is a finite commodity, which is one of its strengths. There are no more than 21 million Bitcoins to be mined in total, with approximately 19.6 million already in circulation.
With less new bitcoins entering the market, the value of existing bitcoins goes up, effectively securing an increasing value over time for the currency. Historically, Bitcoin has gone up after each halving, which is what has current investors glowing with anticipation.
Though Bitcoin is by far the most popular cryptocurrency token out there, and therefore is pretty much synonymous with the term “halving”, it’s not the only cryptocurrency that halves. Of course, being the first cryptocurrency, it’s no wonder others would steal some of Bitcoin’s greatest ideas, and halving as a system of limiting supply is certainly one of those good ideas. Therefore you may hear the term referring to other cryptocurrencies when they have their own event that artificially limits the supply of their token.
A look at previous Bitcoin halvings
When Bitcoin first launched in 2009, miners were able to secure a whopping 50 bitcoins for adding one block to the chain. In 2012, the first halving took place, reducing the reward to 25 bitcoins.
The impact of that first halving on the coin was seismic, effectively launching Bitcoin into the public sphere as people couldn’t help but notice it skyrocketing in value. Prior to the halving, Bitcoin was valued at $13; after the halving, it increased to a peak of $1,152 approximately 18 months later. The halving functioned like a bubble, however, and the value of Bitcoin didn’t stay over $1,000 for long.
In 2016, the coin halved again, reducing gains to 12.5 bitcoins. At the time of halving, Bitcoin was valued at $664; it shot up to a staggering $17,760 in the year and a half that followed. Public enthusiasm was clearly significant despite the number of cryptocurrency scams and failed startups that were pockmarking the market.
Predictably, Bitcoin halved again in 2020, decreasing the reward to 6.25 bitcoins. This time, the coin’s value went from $9,734 to $67,549 at its next peak, which continued to follow the approximate 18-month pattern.
In other words, after each Bitcoin halving, there tends to be a significant value increase over the next 18 months – generally followed by a dip back down below the peak.
| Year | BTC per Block | BTC Price |
| 2009 | 50 BTC | <$1 |
| 2012 | 25 BTC | $12 |
| 2016 | 12.5 BTC | $648 |
| 2020 | 6.25 BTC | $8,572 |
| 2024 | 3.125 BTC | TBD (Currently over $69,000) |
Halvings in 2024 and beyond
With that said, what can we expect from this year’s halving? Interest in Bitcoin in general is already higher than usual this year owing to the launch of the spot Bitcoin ETFs earlier in January. With the opening of the Bitcoin ETFs, institutional funds and professional investors are adopting the coin en masse, driving up its value in advance of the halving expected later this month.
Bitcoin has been holding above $70,000 as a result, representing the first time that the coin is going into a halving at a higher figure than it attained following the previous halving’s subsequent 18-month peak (being $67,549). In simple terms, that means that Bitcoin is already up, and it’s poised to go up even higher once the effect of the April halving is felt.
At the same time, the market appears to be favorable as the Fed is considering lowering interest rates this year, which will only serve to drive Bitcoin up even further.
How high could it go after the 2024 halving? Estimates by market analysts tend to range from between $100,000 to $250,000, although Rich Dad Poor Dad author Robert Kiyosaki is among those eyeing the $300,000 mark.
Following the halving in April, there will be 28 halvings taking place every four years through 2140 – meaning the cycle of halvings followed by 18-month peaks will likely be continuing into the future, and the Bitcoin supply will seriously dry up, making it harder and harder to get Bitcoin in the far future.
Do other cryptocurrencies halve?
Bitcoin isn’t the only coin that halves, leaving room for alt-coin enthusiasts to dip their toes into other spheres to realize potential gains. Litecoin is scheduled to halve on June 27, 2024, Bitcoin Diamond on September 24, 2024, Verge on July 2, 2024, and Vertcoin on December 8, 2025, among others. Some altcoins may not technically “halve” but they do adopt some particular measure of limiting supply to achieve similar results.
Bitcoin Cash completed its halving recently in the first week of April, sparking a 10% increase in value over the ensuing seven days and setting the tone for the upcoming Bitcoin halving.