Do you know that every four years the Bitcoin rewarded to the miners will be cut in half? Yup, it is true, it is called Bitcoin halving. Bitcoin halving on crypto market is quite a momentous event. And to grasp the dynamics of the cryptocurrency ecosystem, this is a word you should be familiar with.
Because this occurrence has the potential to cause unprecedented changes in the crypto market. Therefore, to keep informed and to keep your wallet full, read on! In this blog we’re going to look into its definition, the impact of Bitcoin halving on crypto market, and how you can earn big during this time.
What is Bitcoin halving?
- To understand the impact of Bitcoin halving on crypto market clearly, you should know how Bitcoin mining works.
- Bitcoin functions on a decentralized network,, where individuals who are called “miners”, validate each transaction. And for their work, they receive rewards, Bitcoins.
- To prevent inflation and to keep increasing the value of Bitcoins, the reward will be halved.
- The mining of every 210,000 blocks, which takes about roughly every four years, determines when the Bitcoin halving takes place.
What was the most recent Bitcoin halving?
- On April 19, 2024, the reward for mining a block was reduced from 6.25 BTC to 3.125 BTC as a result of the most recent Bitcoin halving on crypto market, which occurred at the 840,000 block mark. This event has occurred four times so far. The three prior Bitcoin halvings occurred on:
- On November 28, 2012, at the 210,000 block mark, where the block reward was reduced from 50 BTC to 25 BTC.
- On July 9, 2016, at the 420,000 block mark, the block reward was reduced from 25 BTC to 12.5 BTC.
- On May 11, 2020, at the 630,000 block mark, the block reward was reduced from 12.5 BTC to 6.25 BTC.
- At the 1,050,000 block mark, the next Bitcoin halving will occur. Market analysts predict that the reward will be reduced from 3.125 BTC to 1.5625 BTC by mid-2028.
- The final Bitcoin halving will occur when the reward hits zero, which will happen when the total supply of Bitcoins reaches 21 million, expected to be around the year 2140.
The Effect of Bitcoin Halving on Crypto Market: Bearish or Bullish?
The Bitcoin halving is an influential occurrence that has never failed to cause ripples in the crypto market. But how does it benefit traders, it is bullish or bearish? To answer this, we need to understand the impacts it causes in the crypto market.
1. Market Demand and Availability
- Bitcoin halving reduces the number of new Bitcoins entering circulation, while mining costs either remain the same or increase, leading to an expected rise in demand for Bitcoin.
- When demand begins to rise, investors tend to get their hands on as many Bitcoins as they can and begin to hoard them, raising the worth of Bitcoin as an invaluable asset.
2. Increased Mining Competition
- Bitcoin’s halving can have a significant impact on miners’ profits. With the rewards decreasing, miners who use old equipment or who use a lot of energy to run their operations may find it difficult to stay profitable.
- In the long run, this increased competition to remain profitable may push the mining process toward centralization. Consequently, it could strengthen network security and ultimately help all Bitcoin users.
3. Price speculation and market movements
- Traders often look to speculate on price changes in cryptocurrencies during Bitcoin halving, which usually triggers spikes in trading speculation and market volatility.
- Once the Bitcoin halving has occurred, the market can stabilize before perhaps rising, pulling in both long-term and short-term investors and adding a lively dynamic to the crypto market.
4. Repercussions for Alt-Coins
- The price fluctuations of Bitcoin can have a significant impact on the entire cryptocurrency market. When Bitcoin halving occurs and the price of Bitcoin increases, it is common for the price of altcoins to increase as well.
- Investors who make money from Bitcoin are more likely to look into other cryptocurrencies. This helps the crypto ecosystem as a whole and can give exchanges a chance to grow and attract more traders as the market grows.
To answer the question, Market analysts, cryptocurrency enthusiasts, and institutional investors widely consider Bitcoin halving on crypto market to be bullish.
How can you profit from Bitcoin halving on crypto market?
The first instinct after learning about Bitcoin halving is to get your hands on as many Bitcoins as possible and save them for future price changes. Apart from that, there’s another way you can make a ton of money. Which is by launching your own cryptocurrency exchange platform and taking advantage of all the business opportunities that the Bitcoin halving presents.
Why, you ask? Allow me to shed light on the reasons.
- Growing adoption of cryptocurrencies
As the growing popularity of Bitcoin has made cryptocurrencies mainstream, starting a crypto exchange platform at the time of halving would be the perfect time for securing your place in the expanding crypto market.
- Opportunities of Speculations
Traders typically flock to cryptocurrency exchanges during the Bitcoin halving to speculate on price changes. By offering them the option to predict the crypto price through futures trading, you can cash in on this opportunity and attract a large trading volume.
- Surge in Trading Activity
When Bitcoin halving happens, trading activities often peak, since traders want to buy or sell more Bitcoins. This is an excellent time to launch your own cryptocurrency exchange and profit from the increase in demand for a reliable crypto exchange.
- Profit from Increased Trading Fees
You can launch your crypto exchange and start stacking money instantly, due to the increased trading activity during the Bitcoin halving.
- Long-Term Growth Prospects
Since Bitcoin halving on crypto market is a regularly recurring and predictable cycle. Starting your own exchange at this time is perfect for continued growth and fresh opportunities.
Conclusion
The Bitcoin halving is a powerful event in the cryptocurrency world, influencing market dynamics and price movements. With the fourth Bitcoin halving on crypto market completed, it’s a great time to consider starting your crypto exchange. For a smooth crypto ride, consider using a cryptocurrency exchange script, which will help you launch your platform more effectively.
When it comes to cryptocurrency, timing is everything. And with the next Bitcoin halving approaching, are you ready to seize the opportunity with your crypto exchange platform?
