)
On April 20, 2024, at 12:09 am UTC, Bitcoin experienced its fourth halving, a programmed event recurring every four years to regulate the cryptocurrency’s supply. This process involves cutting the mining reward in half, directly impacting the profitability of Bitcoin miners. Historically, halving events have foreshadowed substantial price surges for Bitcoin, driven by the decreased supply prompting heightened demand for new bitcoins.
The Bitcoin halving mechanism automatically adjusts the rewards granted to miners for validating transactions and appending them to the blockchain. Initially, the system allocated 50 bitcoins per block, with this amount halving every 210,000 blocks. The most recent halving slashed the reward from 6.25 to 3.125 bitcoins per block, ensuring that the total Bitcoin supply will max out at 21 million. Notably, by April 2024, around 19.69 million bitcoins were already in circulation, leaving approximately 1.31 million yet to be mined through rewards.
During the occurrence of Bitcoin’s 840,000th block, which denoted the fourth halving event, network fees spiked as numerous users vied for limited block space. Consequently, Bitcoin users collectively spent 37.7 BTC in fees, equivalent to over $2.4 million at prevailing market rates, to guarantee transaction security within that block.
In light of this event, numerous Bitcoin mining entities listed on the Nasdaq stock exchange concluded the trading week with a conspicuous surge in share prices in anticipation of the halving. Particularly, Riot Platforms (RIOT) experienced the most substantial growth among publicly traded Bitcoin mining companies on April 19, with its stock price climbing by 10.13 percent to $9.13.
The fervor surrounding the Bitcoin halving spurred a halt in the week-long outflow streak of Exchange-Traded Funds (ETFs), with a net positive inflow observed in the United States ETF market just before the halving day. This shift was driven by expectations of a post-halving market value increase, prompting investment advisors worldwide to recommend incorporating Bitcoin into existing portfolios.
As of April 22, the price of Bitcoin was recorded at $66,136, reflecting a 1.76 percent uptick in the past 24 hours.
Shankashank, the founder of yMedia, delved into the realm of cryptocurrencies in 2013 and staunchly supports Ethereum. Connect with him on Twitter: @bhardwajshash
To stay updated, subscribe now.