The Bitcoin community is anticipating the upcoming halving event, expected in April, with less than 100 days or 14,500 blocks remaining. This event will reduce the block reward for miners from 6.25 to 3.125 Bitcoin. The countdown is based on Bitcoin’s average 10-minute block generation time, with analysts predicting the potential date to be April 22. Halving events are programmed to occur automatically every 210,000 blocks, roughly every four years.
Following this date, miners will receive 50% less Bitcoin for each block they validate and add to the blockchain ecosystem. Despite the reduced block reward, miners will continue to earn transaction fees per block as usual. So far, three halving events have taken place in Bitcoin’s history, with the first in 2021 reducing the reward from 50 to 25 Bitcoin, followed by a drop to 12.5 Bitcoin in 2016, and most recently to 6.25 Bitcoin on May 11, 2020. Halving events will continue until the last Bitcoin is mined around the year 2140, after which miners will only earn from transaction fees.
Historically, Bitcoin halving events have been associated with significant price surges in the cryptocurrency, often occurring before major bull runs in the Bitcoin market. Although there is no direct cause-and-effect relationship, these events typically precede substantial market rallies.
Last month, analysts from VanEck, a spot Bitcoin ETF issuer, predicted that following the halving event, Bitcoin’s price could rise above $48,000, and miners could face fewer difficulties due to better balance sheets, suggesting that the event may have less impact on the price than expected. Additionally, analysts anticipate that Bitcoin could reach an all-time high by November this year, influenced by the US elections, and potentially hit a final cycle peak of $160,000.
Analysts also make a long-term call that if Bitcoin reaches $100,000 by December, Satoshi Nakamoto could be named Time Magazine’s ‘Person of the Year.’