Gate.io Market Watch: Bitcoin’s Fourth Halving Narrative in the Making
The Bitcoin halving is still over a year away, but investors are already preparing for what is likely crypto’s most anticipated recurring event, one that has become embedded in the psyche of crypto investors. With interest growing despite being so far from the deadline, could this be a sign of a renewed bull market in 2024?
The halving, sometimes called “halvening,” occurs every 210,000 blocks in the Bitcoin blockchain. When it happens, the reward earned by miners for mining one block is cut in half. Since these rewards are the only way new BTC is created, the issuance rate of new BTC is significantly reduced.
A reduction in issuance is an intentional feature of Bitcoin’s code and was implemented to manage the supply of BTC over time. The crypto exchange Gate.io has provided helpful info about the Bitcoin halving and its importance on Gate Learn; it’s worth checking out.
How halvings can impact the market
Historically, the crypto market tends to rally soon after Bitcoin halves. As noted on the Gate.io blog by crypto market researchers, this has made these events key psychological indicators as the consensus is that a halving precedes a green market. It’s also worth noting that recent Google search trends show an increasing interest in the halving, though the trends have yet to reach past levels.
Although past performance alone is not an indicator of the future, the psychological factor of the halving events remains strong in the crypto space, despite its effect in terms of supply and demand decreasing with each halving. It’s also important to recognize that the next halving is likely to occur under a different macroeconomic environment than the previous, as there remains a lot of uncertainty around the global economy.
When is the next Bitcoin halving?
Since the halving is based on block height, there is no set date. However, it can be estimated accurately. The fourth is likely to happen at the end of April 2024, according to Gate.io’s halving countdown tracker. The page also provides a ton of great information about past halvings and how the events impact the market, and it’s an excellent resource for tracking the next Bitcoin halving event.
