All eyes are on the Bitcoin Halving Counter, with just 24 days left until the Halving Bitcoin 2024 event, but what happens when Bitcoin halves? What is the Impact of Bitcoin Halving on Price? And what are the three main catalysts that could cause an upward BTC price move before April 20th.
Over the past few months, Bitcoin has been back in the spotlight, galvanizing orange coin enthusiasts as BTC price hammers new all-time highs following the approval of mock Bitcoin ETFs.
However, market analysts have revealed that there are three major events to be positive about ahead of the upcoming halving event, in a post on X, user muneeb.btc highlighted the potential catalysts – which BTC bears with the line “And you are clumsy”. on Bitcoin, anon?”.
All three of these events are getting a lot of hype and attention, so with all eyes on the Bitcoin Halving counter, let’s examine what each event means for BTC, what happens when Bitcoin halves, and what price action will look like after these highly anticipated events.
1. What Happens at Bitcoin Halving 2024 Event?
‘What Happens When Bitcoin Halves?’ is a popular question around this time among new retail investors who are curious about the crypto market.
Every four years, the Bitcoin ecosystem undergoes a significant change known as the “halving” – during this event, the supply of new bitcoins entering the market is reduced by 50%, as the block rewards produced by miners are pre-programmed to to cut in half.
This has historically led to a notable rise in the price of Bitcoin over the past decade, with the halving event acting as a major supply shock catalyst.
In 2020, Bitcoin rose +19% before the 2020 halving event, and +142% before the 2016 halving. However, this opportunity also presents a significant challenge for miners.
The reduction in mining rewards puts financial pressure on Bitcoin miners, who face increasing costs to mine a single bitcoin—costs estimated to rise from the current $10,000-$15,000 to potentially $40,000 post-2024 halving.
Just think, in the early 2010s you could mine a BTC on your computer for a buck – and now you have to invest thousands of dollars in high-powered ASIC farms.
2. Runes Launch in April – A Revolution For Ordinals and BRC-20
Runes are the latest innovation from Casey Rodarmor, the developer behind the transformative Bitcoin Ordinals project, which enabled NFTs on Bitcoin via the BRC-20 token standard.
The new Runes protocol aims to further expand Bitcoin’s utility by facilitating the creation and trading of fungible tokens, effectively creating a mechanism for the deployment of low-cap BTC-linked projects through a simpler more streamlined model to use as BRC-20 tokens.
Like BRC-20s, Runes will use Bitcoin and pay fees in Bitcoin to create new tokens – however, there is a key difference in the blockchain architecture used to deploy Runes.
Like Bitcoin itself, Runes uses an Unspent Transaction Output (UTXO) model instead of an account model – the same model used by some layer-1 chains such as Ethereum.
As the meme markets continue to boom on Solana and Base Protocol, it cannot be denied that this is a profitable opportunity for BTC Runes.
3. Stacks (STX) Upcoming Nakamoto Upgrade
Originally launched in 2018 as Blockstack, Stacks is a leading L2 Bitcoin integrated DeFi platform. This means Stacks gives Bitcoin smart contract capabilities and the development of decentralized applications (dApps) and decentralized finance (DeFi).
Stacks boasts over 60 applications, with ALEX (formerly known as StacksSwap) emerging as the leading L2 Bitcoin DeFi platform.
Stacks also has Arkadiko, a user-friendly platform for NFT making and trading, which recently launched its 2.0 version.
Recently, the Stacks blockchain community overwhelmingly endorsed the Nakamoto upgrade, marking an important milestone for Bitcoin.
This upgrade aims to address transaction speed issues by facilitating faster processing times between Bitcoin blocks without compromising Bitcoin’s well-known security. Another thing worth noting is the introduction of sBTC, a wrapped version of Bitcoin that maintains a value ratio of 1:1.
Bottom Line: Major catalyst events will increase the impact of Bitcoin halving on price
(BTC Halving Chart)
Bitcoin is often considered Grandpa crypto – it cannot compete with the ultra-scalable, high-speed, low-cost blockchain solutions offered by Solana or BASE. However, this is changing thanks to the never-ending ingenuity and innovation of the Bitcoiner community.
The Bitcoin Halving impact on price is likely to be a continuation of the halving cycle chart – with the Bitcoin Rainbow Chart suggesting that it is still a good time to buy and hold BTC.
So, with all eyes on the Bitcoin halving counter, 2024 is shaping up to be a historic year for Bitcoin, with markets expecting not only significant price increases following the introduction of a reduced supply, but also huge growth expected by Bitcoin Runes and the Stacks Nakamoto upgrade.
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Disclaimer: Crypto is a high risk asset class. This article is provided for informational purposes and is not investment advice. You can lose all your capital.
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