{"id":19379,"date":"2024-03-29T11:20:30","date_gmt":"2024-03-29T10:20:30","guid":{"rendered":"https:\/\/affidaty.io\/blog\/?p=19379"},"modified":"2024-03-29T11:20:33","modified_gmt":"2024-03-29T10:20:33","slug":"halving-bitcoin-price-etf-altcoin","status":"publish","type":"post","link":"https:\/\/affidaty.io\/blog\/en\/2024\/03\/halving-bitcoin-price-etf-altcoin\/","title":{"rendered":"Halving Bitcoin, ETFs, Altcoin Season: all very related"},"content":{"rendered":"\n
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What is Bitcoin Halving?<\/h2>\n\n\n\n

Bitcoin Halving is a programmed event in the protocol that halves the miners’ reward for validating blocks on the blockchain. In simple terms, it is a halving of the issuance of Bitcoin for every new block created.<\/p>\n\n\n\n

The main objective is to control Bitcoin’s inflation and ensure its limited supply.
The process is based on a predefined and automatic algorithm, with the reward halving every 210,000 blocks, approximately every four years.
At the time of Bitcoin’s inception in 2009, the reward was 50 BTC per block.
The first Halving in 2012 reduced it to 25 BTC, the second in 2016 to 12.5 BTC, and with the third Halving in 2020, it dropped to 6.25 BTC.<\/p>\n\n\n\n

The next one, expected by late April 2024, will bring the reward to 3.125 BTC. This cycle will continue until the completion of the last cycle in 2144, following the network’s economic plan to issue a maximum of 21 million circulating coins.<\/p>\n\n\n\n

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How does Halving affect Bitcoin’s price?<\/h2>\n\n\n\n

From the previous analysis, we understand that Bitcoin’s Halving cyclically halves the circulating supply of the currency.
Two crucial economic forces come into play: demand and supply.<\/p>\n\n\n\n

In summary, an increase in demand raises the price, while an increase in supply lowers it.<\/p>\n\n\n\n

In the traditional world, the scarcity of a highly demanded good prompts consumers to pay more for it.
For Bitcoin, the supply is predetermined, with halving occurring every 210,000 blocks, bringing the maximum supply to 21 million.<\/p>\n\n\n\n

But there’s a catch.<\/p>\n\n\n\n

While the supply is predetermined, we cannot say the same for demand. This is practically impossible to predict as it depends on many factors of various natures.<\/p>\n\n\n\n

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Price history post- Bitcoin’s Halving<\/h2>\n\n\n\n

Let’s graphically analyze Bitcoin’s price behavior after each executed Halving.<\/p>\n\n\n\n

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