The forthcoming Bitcoin halving event is generating excitement in the crypto community. Changpeng Zhao, CEO and founder of Binance, tweeted the countdown for the approaching halving event. According to his tweet, the Bitcoin halving event is scheduled for April 17, 2024, which is 135 days away. This event occurs once every four years and involves reducing the block reward for miners.
The current block reward of 6.25 BTC per block will be halved to 3.125 BTC per block. The crypto market has been eagerly anticipating this event as it aims to regain momentum after a challenging 2022. The value of the crypto market, led by Bitcoin, crashed from $2.92 trillion in November 2021 to $900 billion a year later. Bitcoin and altcoins have since been working on a comeback.
Recent events, such as the potential approval of a Bitcoin spot ETF, have provided positive momentum to blockchain-based assets. However, the upcoming halving event is considered the missing piece of the puzzle that could drive the crypto market into a full-blown bull market by next year.
Bitcoin Halving Events and Price Surge
Bitcoin halving events have always had a significant impact on the price. Typically, the price of Bitcoin experiences a substantial surge, often doubling or quadrupling in value. This surge can be attributed to the reduced supply of BTC in the market, which leads to increasing demand.
In the halving event of mid-May 2020, Bitcoin surged from less than $10,000 to an impressive $69,044 the following year. Market experts have consistently observed this trend and anticipate a similar outcome with the 2024 halving event.
Rekt Capital, a prominent crypto market investor, has provided further insight into this phenomenon. He illustrated a graphical representation of the full cycle of a BTC bull run. The five key phases identified are the pre-halving period, pre-halving rally, pre-halving retrace, re-accumulation, and parabolic uptrend.
“Currently, the crypto market is in the pre-halving period, which occurs several months before the actual event. The pre-halving rally usually begins around 60 days before the event, marked by a slight increase in BTC price. The subsequent phases involve minor price dips, investor buybacks, and a significant increase in Bitcoin value in the months that follow,”
– Rekt Capital
