[NEW] Bitcoin's halving is approaching, set to reach the 20th Japan time

The halving of Bitcoin (BTC) is just around the corner. The halving, in which mining rewards are reduced every 210,000 blocks, occurs in a cycle of about four years. According to CoinGecko, it is currently expected to occur around 11:00 a.m. on the 20th, Japan time.

Bitcoin's mining reward will decrease from 6.25 BTC to 3.125 BTC due to this halving. This is said to reduce the supply of Bitcoin and increase its scarcity.

The number of Bitcoins issued is set at 21 million BTC, and 99% of the total amount is expected to be issued by the sixth halving, which is currently expected to occur around 2032.

Looking back at the past, the price of Bitcoin has reached an all-time high after a halving, but this time the situation is different. The approval of a Bitcoin spot ETF in the United States in January this year led to a large inflow of funds into the market, and in March it rose to an all-time high of $73,500 (about 11.35 million yen).

At the time of writing, the price has fallen to about $61,000 (approximately 9.4 million yen), but many believe that this is due to the Middle East situation, falling stock prices, and profit-taking sales, and some say that the price will rise again after the halving after some adjustments.

On the other hand, Bitcoin's price has risen significantly, and the rate of price increase after the halving is calming down year by year. Therefore, some analysts warn that the halving is no longer an era in which the halving has such a large impact on the Bitcoin price.

It is also expected that small miners will no longer be able to make a profit after the halving, and there will be a growing trend for them to withdraw. In addition, the hash rate tends to drop sharply after the halving, which may also affect the speed at which Bitcoin blocks are generated.

Will Bitcoin Spot ETFs Boost Prices After the Halving?

There is a strong view that the existence of spot ETFs will boost the price of Bitcoin after the halving. Many financial institutions and analysts predict that there will be a significant price increase from the second half of 2024 to 2025.

Following the approval of a Bitcoin spot ETF in Hong Kong this month, similar moves are likely to be seen in other countries in the future. As it will be possible to hold Bitcoin indirectly, demand is likely to increase, especially among institutional investors in each country.

Reference:CoinGecko
Image: Shutterstock

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