Key Points
- The Bitcoin halving 2024 is expected to occur in three weeks, reducing mining rewards from 6.25 BTC to 3.125 BTC.
- The halving could potentially boost Bitcoin ETFs, with some analysts predicting Bitcoin prices to reach $200,000 by the end of 2025.
The highly anticipated Bitcoin halving 2024 is set to take place in three weeks, or 21 days, scheduled for April 19, depending on the average block time of the last 20,160 blocks.
The halving is slated to occur at block 840,000, although some market experts suggest the exact date could shift by a day, to around April 20.
Bitcoin Halving and Its Impact
The Bitcoin halving cycle is a pre-programmed reduction in BTC rewards.
This entails a 50% decrease in the mining rewards given to Bitcoin miners approximately every four years, happening at every 210,000 blocks.
In the forthcoming Bitcoin halving, the miner rewards will decrease from 6.25 BTC to 3.125 BTC.
Several Bitcoin miners have already started preparing for the next steps following the halving.
A significant number of Bitcoin miners have been liquidating their holdings in recent months and using the proceeds to upgrade their mining equipment.
Historically, Bitcoin halving events have been seen as beneficial for BTC investors as the reduction in supply tends to drive prices higher over the long term.
As such, many are predicting that history will repeat itself, with some forecasting Bitcoin price targets of $200,000 by the end of 2025.
Bitcoin Halving 2024 and Bitcoin ETFs
Renowned broker Canaccord Genuity recently published a report discussing Bitcoin’s impressive 60% surge in the first quarter.
The broker pointed out that this rally was largely driven by the launch of spot exchange-traded funds (ETFs), the upcoming reward halving, and an increasing appetite for risk in financial markets.
The team of analysts, led by Michael Graham, noted that while the macroeconomic outlook remains uncertain, the impending halving event could potentially strengthen the tailwinds for Bitcoin ETFs.
They also highlighted that activity levels across the cryptocurrency ecosystem have been recovering from the lows seen in 2023.
The fourth halving event, which cuts miner rewards by 50%, thereby reducing the supply of Bitcoin, is expected in April.
Canaccord expressed optimism about the Securities and Exchange Commission’s (SEC) approval of 11 U.S. spot Bitcoin ETFs in the quarter, predicting a continued tailwind as retail investors look to incorporate crypto exposure into tax-advantaged accounts like IRAs.
Moreover, the report reveals that publicly traded Bitcoin miners underperformed BTC during the first quarter.
This clearly indicates their decoupling from the BTC price. Consequently, many are questioning the profitability of the miners after the upcoming halving.
On the other hand, spot Bitcoin ETFs offer equity investors an alternative to gain exposure to Bitcoin.
Canaccord suggested that if historical patterns repeat, a potentially more bullish period for Bitcoin could unfold in the months following the halving event.
