Glassnode, a well-known data provider in the cryptocurrency space, has announced its calculations for the approximate date of the next Bitcoin halving event, scheduled for April-May 2024. Although the crypto community has speculated about the possible month, Glassnode’s metrics-based calculation offers a more accurate timeframe, creating anticipation within the crypto world.
Determining the Numbers: Glassnode’s Unique Approach
Glassnode recently revealed its methodology for determining the number of days left until Bitcoin’s fourth halving through a publication. By leveraging Bitcoin’s 14-day average range, Glassnode estimates that the upcoming reduction in Bitcoin miner rewards is about 130 days away, pinpointing April 23 as the potential date for the halving event.
The cryptocurrency community, taking into account the historical performance of Bitcoin following such events, is brimming with expectations for the upcoming halving. Each of the previous three halvings was followed by significant price increases, with the most recent one in 2020 multiplying Bitcoin’s value by six times.
The cryptocurrency reached its all-time high in April 2021 at $65,000 and climbed to $69,000 in October of the same year. The halving mechanism, which occurs every four years, aims to make Bitcoin more deflationary by halving the amount of Bitcoin mined by miners.
Beyond the Halving: Factors Influencing Bitcoin’s Trajectory
While the halving undoubtedly plays a role in shaping Bitcoin’s trajectory, experts highlight the influence of external factors. Some argue that the US Federal Reserve’s monetary policy response to the pandemic had a significant effect on Bitcoin’s rise to $69,000 in 2021. Households and companies were injected with over six trillion dollars in 2020.
In addition, influential figures like Elon Musk also played a significant role. Tesla’s announcement of a $1.5 billion investment in Bitcoin and its acceptance of the cryptocurrency for car payments made a notable impact. However, Musk’s subsequent retraction of Bitcoin payments due to environmental concerns associated with Proof of Work (PoW) mining added a new layer of complexity to the narrative.
Tesla’s later decision to sell off a significant portion of its Bitcoin holdings adds even more intrigue to the future path of Bitcoin. As Glassnode continues the countdown to the halving, the crypto community eagerly awaits to see how these dynamics will shape the journey of the cryptocurrency in 2024.