Bitcoin halving 2024 takes place: What next?
Estimated reading time: 2 min
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1. You could lose all the money you invest
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- A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
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For further information about cryptoassets, visit the FCA's website here.
The latest Bitcoin halving has happened and, so far, there’s been no huge price shock.
It was the most anticipated crypto event in 2024. On Friday, 19 April, Bitcoin completed its fourth-ever halving where rewards earned by miners were halved from 6.25 to 3.125.
In the months leading up to it, Bitcoin’s price rallied and experts predicted the start of a crypto bull run. But at the time of writing, Bitcoin’s price has remained relatively stable. So what’s next for Bitcoin?
Bitcoin halving 2024
After much fanfare, the actual Bitcoin halving event has yet to drastically shake things up.
A Bitcoin halving is when the rewards given to miners are reduced by, as the name suggests, half. It happens once every 4 years, roughly, and can have a major effect on crypto prices.
After a tough couple of years for the crypto market, there was much hype about the 2024 halving. This, combined with the US regulator approving Bitcoin ETFs, led to an early price spike for Bitcoin.
However, the price has changed little since Friday, suggesting that the halving had already been priced into the market.
What’s next?
If there is a bull run, this typically plays out over months not days. And each halving event is different, with different market conditions at the time. So past performance doesn’t guarantee future gains, as with any crypto investing.
Experts will be watching Bitcoin’s price performance closely over the coming months, as the reduction of supply is expected to drive up the price.
However, there are other factors which will contribute to Bitcoin’s price: speculation around whether Ethereum ETFs will be approved, as well as other regulatory developments, for example. The Bitcoin investment landscape is more sophisticated than it was 4 years ago, so it would be foolish to expect the market to behave in the same way.
Since Bitcoin is famous for its price volatility, we can expect some further fireworks in 2024. *Cryptocurrencies aren't regulated in the UK and there's no protection from the Financial Ombudsman or the Financial Services Compensation Scheme. Your capital is at risk. Capital gains tax on profits may apply. Cryptocurrencies are speculative and investing in them involves significant risks - they're highly volatile, vulnerable to hacking and sensitive to secondary activity. The value of investments can fall as well as rise and you may get back less than you invested. Past performance is no guarantee of future results. This content shouldn't be interpreted as a recommendation to invest. Before you invest, you should get advice and decide whether the potential return outweighs the risks. Finder, or the author, may have holdings in the cryptocurrencies discussed.
