The fourth Bitcoin Halving, set for April 2024, is causing curiosity as to what will happen to the price of BTC. According to Luno Indonesia, the upcoming Bitcoin Halving will occur on Saturday, April 20, 2024, at block number 840,000.
Halving events occur approximately every four years (or every 210,000 transaction blocks), where the rewards for Bitcoin miners are halved. This reduction in rewards is done to gradually control the Bitcoin supply and regulate inflation. With the new supply of Bitcoin decreasing but demand remaining high, the halving can potentially influence the price of Bitcoin.
For miners validating transactions in the blockchain, this halving will reduce their rewards from 6.25 BTC per block to 3.125 BTC per block. Despite historical patterns of price increases after halvings, there is no guarantee that the price of Bitcoin will rise, fall, or remain the same after the upcoming halving in April 2024.
The recent approval of the first exchange-traded fund (ETF) Bitcoin Spot in the US has caused over US$6 billion in funds to flow into Bitcoin ETFs. This influx of institutional investment has changed the cryptocurrency industry significantly, making the upcoming halving cycle different from previous ones.
Looking back at previous halving events in 2012, 2016, and 2020, Bitcoin's price has shown significant fluctuations following each halving. However, halving events do not affect the total amount or nature of Bitcoin you hold; they only impact the rewards received by Bitcoin miners.
