As the calendar pages turn, the cryptoverse is beginning to buzz about the upcoming Bitcoin halving event, projected for April 2024. This important milestone, which happens every four years, chops the supply of Bitcoin available on the market in half. This time around, it will see the block reward for Bitcoin miners drop from 6.25 BTC to 3.125 BTC per block.
Chang Peng Zhao, CEO of prominent cryptocurrency exchange Binance, recently posted a reminder of this forthcoming event on his X social media profile, marking a countdown to the expected halving. He makes it clear that it is just 135 days away, a number stoking excitement and expectation within the Bitcoin community.
It’s worth noting that the halving of Bitcoin – a consequence of the way the cryptocurrency’s supply is regulated – is often followed by a positive impact on its price. By reducing supply while demand continues to grow, a price swell often closely trails behind the halving event.
The so-called bull run in 2020, which was kick-started with the halving in May of that year, is a case in point. With just two months to go until the halving, Bitcoin was priced under $10,000; however, the halving-induced surge sent the cryptocurrency’s value beyond its then-record of approximately $17,000. A post-halving price skyrocket witnessed Bitcoin reaching a new record-high of over $69,000.
‘Rekt Capital’, a recognized technical analyst, regularly posts on Twitter about the different phases of a Bitcoin bull cycle. These phases include a pre-halving run-up as investors anticipate the halving, a retrace around the time of the halving itself, a following period of reaccumulation, and finally, a parabolic surge when Bitcoin reaches new peaks. Investors should be prepared for a lively period of activity as the next halving event approaches.