Will Bitcoin Price Go Up After Halving in 2024?

Bitcoin remains the outstanding cryptocurrency even after more than a decade of its creation. All the credits goes to its anonymous creator Satoshi Nakamoto and the unique design of the Bitcoin blockchain.

There is no harm in saying that the “Bitcoin Halving” is behind the long-term price appreciation of Bitcoin. Historically, there is a clear correlation between the Bitcoin Halving event and the price increases of Bitcoin throughout its existence.

The same pattern is likely to repeat in the upcoming Bitcoin Halving event in 2024 as well. Bitcoin price will definitely go up after halving in 2024, even if it’s not right after the event. The present article covers everything you need to know about how the Bitcoin Halving impacts Bitcoin price movements in detail.

What is Bitcoin Halving?

Bitcoin’s anonymous creator Sathoshi Nakamoto has set some hard code rules when he first launched the Bitcoin blockchain. And, Bitcoin Halving is an important predefined rule among them.

Bitcoin Halving refers to a concept where the Bitcoin block rewards reduce by half every four years. The miners receive block rewards in the form of Bitcoins for verifying transactions and mining new blocks. The Bitcoin Halving event gradually reduces these block rewards and releases new Bitcoins into circulation at a slow rate.

The main motive behind this concept is to reduce the number of Bitcoins that can be mined to keep its supply in check. Halving events occur every four years, after 210,000 blocks are mined in the Bitcoin network.

The initial block reward, when the Bitcoin blockchain was launched, was 50 BTC. It reduced to 25 BTC after the first Bitcoin Halving event in 2012. The same way, the second Bitcoin Halving event occurred in 2016 and reduced the block reward to 12.5 BTC. The current block reward on the Bitcoin blockchain is 6.25 and it will reduce to 3.125 after the upcoming Bitcoin halving event in 2024.

Bitcoin Halving Impact on Bitcoin Price

Bitcoin price witnessed price increases after a few months of each Bitcoin halving event. Here we will look at past Bitcoin halving events and how they impacted the BTC price.

First Bitcoin Halving Event

The first Bitcoin halving event took place in 2012 on November 28. It reduced block rewards from 50 BTC to 25 BTC. Even though the price impact of the first Bitcoin halving is not immediate, it played a huge role in BTC’s thousandfold price rise.

From around $12 before the first BTC halving in 2021, Bitcoin’s price rose to more than $1,000 in 2013. In less than a year, Bitcoin’s price shot up and reached a new all-time high value. However, Bitcoin halving is not the only cause behind this price rally. The increased awareness of Bitcoin and cryptocurrencies along investors and growing acceptance of Bitcoin have also played a part in the price surge.

Second Bitcoin Halving Event

The second Bitcoin halving event took place on July 9, 2016 and reduced the block reward further from 25 BTC to 12.5 BTC. At the time of the event, the Bitcoin price was trading at around $700. Even though the cryptocurrency plunged right after the halving event, it recorded a new all-time high of $20,089 in a few weeks after the event.

Third Bitcoin Halving Event

Coming to the third Bitcoin halving event, it happened on May 11, 2020, reducing block reward to 6.25 BTC. Due to uncertainties in the market due to macroeconomic conditions and COVID-10 pandemic, Bitcoin price didn’t rise immediately after the event.

At the time of the third Bitcoin halving event, the Bitcoin price was trading at around $8,000. Similar to the past two Bitcoin halving events, the BTC price reached a new all-time high of $66,000. However, this time the price surge happened several months after the event in November, 2021.

Will Bitcoin Price Go Up After Halving in 2024?

The next Bitcoin halving event is estimated to happen in April 2024. Similar to all the past events and their price impacts, the fourth Bitcoin halving is also going to increase the price of Bitcoin.

This time, the block reward of Bitcoin will reduce from 6.25 BTC to 3.125 BTC. Considering the previous price surges of Bitcoin after halving events, we can theoretically say that Bitcoin price would increase after the upcoming Bitcoin halving event as well.

The price surge has already started as the Bitcoin price is trading above the $50,000 mark as of February 2024. It seems like Bitcoin price estimations have started to reflect on the market while less than couple of months are left for the halving event.

While it is true that halving events result in increased BTC price, it doesn’t happen right after the event. So, we would have to monitor how long does the BTC take this time after the halving event for its price to increase.