Bitcoin Halving 2024 — Grayscale Study Reveals Unprecedented Market Evolution

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13 Feb 2024

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by Jamie Redman
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Bitcoin Halving 2024 — Grayscale Study Reveals Unprecedented Market Evolution

According to the latest data, the countdown to the Bitcoin network’s halving event shows fewer than 10,000 blocks from becoming a reality. Further analysis suggests that the halving is anticipated to take place between April 19 and April 21, 2024, reducing the block rewards from the existing rate of 6.25 bitcoins per block to 3.125 bitcoins per block after the halving. A recent research analysis by Grayscale indicates that “fundamental onchain activity and positive market structure updates make this halving different on a fundamental level.”

Fewer Than 10,000 Blocks to Go Until the Fourth Bitcoin Halving

The countdown to the Bitcoin halving event narrows with each passing day, and fewer than 10,000 blocks remain to be mined before it unfolds. A variety of halving counters available online present slightly varying times, yet all hover near the anticipated timeframe for the halving occurrence. The most accurate method to predict the timing of the halving is to calculate the remaining blocks until the epoch. This is done by multiplying the ten-minute interval for each block by the number of blocks left to mine.
Source: bitcoinblockhalf.com
Bitcoin halvings are scheduled to happen after every 210,000 blocks mined, which typically spans four years. Currently, around 900 new BTC are created daily, but this number will halve to 450 BTC per day post-halving. Miners will then earn 3.125 bitcoins for each block mined, in addition to transaction fees from the blocks they process. Given the increased value of bitcoin against the U.S. dollar and higher transaction fees, miners are looking at the bright side despite facing a 50% reduction in their block reward income.

Grayscale Analysis Highlights Fundamental Shift Ahead of 2024 Bitcoin Halving

As the 2024 Bitcoin halving approaches, Grayscale’s Michael Zhao highlights its unprecedented impact on the market in a report published on Feb. 9, 2024. Zhao’s study points out that, despite short-term challenges for miners, the 2024 halving is fundamentally different. Innovations on the blockchain, such as Ordinal inscriptions, and positive market structure updates are expected to sustain and even boost the crypto asset’s value in ways not seen in previous halvings.
“Beyond the obvious supply impact, the notable excitement and anticipation around Bitcoin halvings also stems from their historical association with bitcoin price increases,” Grayscale’s Michael Zhao details. At the time of writing, there are 9,854 blocks left to mine until the halving as of block height 830,146.
The study further discusses the preparation of miners for reduced block rewards by diversifying their financial strategies. This preparation includes raising funds through equity and debt issuances, and selling reserves, aiming to mitigate the financial impact. Zhao explains that this strategic positioning is vital for maintaining the stability and security of the Bitcoin network post-halving.
“While the scenario might seem dire, there’s evidence that miners have long been preparing for the financial repercussions of the halving,” Grayscale’s research report notes. “There was a noticeable trend of miners selling their Bitcoin holdings onchain in Q4 2023, presumably building liquidity ahead of the reduction in block rewards.”
The study also delves into the significant role of the new spot bitcoin exchange-traded funds (ETFs) in absorbing sell pressure, potentially altering the market dynamics in favor of BTC’s price stability. Zhao details that the adoption of spot bitcoin ETFs introduces a new, steady demand source, contrasting sharply with the anticipated sell pressure from newly mined bitcoins entering the market.
“As we get closer to the 2024 halving, Bitcoin is not just surviving; it’s evolving,” Zhao remarks, highlighting the evolution of BTC’s market structure following the approval of spot Bitcoin ETFs in the United States. This evolution suggests a maturing market that could reshape investors’ approach to cryptocurrency, making the upcoming halving a landmark event with long-lasting implications on BTC’s value and its role in the broader financial landscape.
What do you think about the upcoming Bitcoin network halving event? Share your thoughts and opinions about this subject in the comments section below.

TAGS IN THIS STORY

Bitcoin, Bitcoin (BTC), bitcoin halving, Bitcoin mining, Crypto, Cryptocurrency, grayscale, Grayscale Report, Michael Zhao, Reward Halving

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 8,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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