2024-04-18 16:30:07 ET
Bitcoin halving, an event where mining difficulty is adjusted once every four years, is less than 200 blocks away. Scheduled for April 20, the Bitcoin halving is considered a catalyst for BTC price. The event influences trader sentiment and influences the prices of altcoins.
Bitcoin halving: How many blocks to go?
The countdown timer on IntoTheBlock shows that the Bitcoin mining difficulty adjustment is less than 180 blocks away, precisely 177. Typically, it takes 10 minutes to add a new block to the Bitcoin blockchain.
Estimated time remaining for the Bitcoin halving
The halving is estimated to occur on Friday, April 20, 2024, less than a day away.
What is a Bitcoin block?
A block is a record of the most recent crypto transactions on the blockchain, similar to a single record in a long list. Each block contains information about the one that preceded it, this orders the blocks and safeguards them from alteration.
During the halving event, the reward for mining a block is slashed in half. The mining difficulty is adjusted alongside the block reward halving, impacting the supply dynamics of the asset.
Bitcoin halving showdown: How traders are preparing for the big day?
Crypto Quant data shows that the selling pressure on Bitcoin is likely declining as unrealized profit margins are inching closer to zero. Traders’ realized price, represented by a pink line in the Crypto Quant chart below, has acted as a support during the bull run. It is now at approximately $60,000, signaling upside potential in the asset.
Bitcoin short-term holder realized price and profit/loss margin
Experts like JP Morgan analysts and Castle Island Ventures Founding Partner Nic Carter believe that the Bitcoin halving is priced in. Carter told Bloomberg Crypto that everybody knows the Bitcoin halving is coming, “so it should be priced in.”
Analysts at crypto intelligence firm IntoTheBlock say that the Bitcoin price drop to $61,000 this week is likely “business as usual” for traders. Nearly 97% of Bitcoin holders were profitable for an extended period, which made the situation unsustainable. The new all-time high resulted in this rare occurrence and a correction was an obvious next step for Bitcoin.
Options market data from CoinGlass shows a nearly 40% decline in Options Volume on Thursday. Open interest in Bitcoin options marked a 2% increase.
BTC traders anticipate massive gains in the largest asset by market capitalization. Bitcoin price rallied 8,839% in the first year after the 2012 halving, 285% in 2017 (a year post the 2016 event) and 548% after the 2020 halving.
Bitcoin price before and after halvings
It remains to be seen whether the trend repeats and BTC price rallies within 12 months post the halving event.
What halving could mean for crypto regulation?
Natalia Latka, policy director and regulatory affairs at blockchain analysis firm, Merkle Science, says that the additional scrutiny around the Bitcoin halving event could indirectly influence its regulation.
Regulators typically concern themselves with the market stability and the protection of investor funds. These two factors could face an indirect impact of the Bitcoin halving. US Securities and Exchange Commission’s (SEC) recent approval of the Spot Bitcoin ETF has made the event hard to ignore and related factors like the environmental impact of mining, and the concentration of mining activities in a few big giants could draw the attention of regulators and lawmakers.
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