Less than a year left before halving: what will be the dynamics of the value of bitcoin
Date: 2023-08-06 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
What is bitcoin halving
Bitcoin algorithms require periodic recalculation of the subsidy per block. Accordingly, this reduces the reward of miners for mining coins by half.
At first, the reward of miners was 50 bitcoins, then 25, then 12.5 and 6.25 bitcoins. It is expected that in 2024 it will drop to 3.12 bitcoins.
But due to the limited supply of bitcoin, its value has the prospect of stable growth, but the process is not linear.
By 2023, three halvings have already taken place. The time period between them is not the same, because halving occurs every 210,000 blocks. And the trend towards a rapid increase in mining difficulty is shortening the time between them, usually taking less than four years.
What to expect from the next halving
Most likely, the next halving will take place on April 17, 2024. This calculation takes into account the average block mining time over the summer, which is 9.4 minutes.
As of April 17, the Bitcoin exchange rate was $30,300. The bulls have been testing a strong resistance level in the $30,000-$31,500 region in recent months, but failed to overcome it.
The tight monetary policy of the Federal Reserve System has already led to the consolidation of the highest interest rates since 2001. The fiat value of the fiat value of digital assets also reduces the lack of access to cheap credit resources.
Therefore, a few months before the halving, the growth of bitcoin may resume, which will entail a certain period of favorable prices for coins. Then the coins will rise to a new record high.
