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All eyes are fixed 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 Bitcoin Halving impact on price? And, what are the three major catalysts that could trigger an upside BTC price move ahead of April 20.
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 spot Bitcoin ETFs.
However, market analysts have revealed that there are three major events to be bullish about before the upcoming halving event, in a post on X, user muneeb.btc, highlighted the potential catalysts – goading BTC bears with the line “And you’re bearish 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 explore what each event means for BTC, what happens when Bitcoin halves, and how price action will look following these highly anticipated events.
1. What Happens At Bitcoin Halving 2024 Event?
‘What happens when Bitcoin halves?’ is a popular question around this time amongst new retail investors 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 is pre-programmed to cut in half.
This has historically led to a notable increase 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 event also presents a considerable challenge for miners.
The reduction in mining rewards puts financial pressure on Bitcoin miners, who face increasing costs to mine a single bitcoin—costs that are estimated to surge 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 need to invest thousands of dollars in high-powered ASIC farms.
2. Runes Launch in April – A Revolution For Ordinals and BRC-20
Runes is the latest innovation from Casey Rodarmor, the developer behind the transformative Bitcoin Ordinals project, which allowed for NFTs on Bitcoin via the BRC-20 token standard.
The new Runes protocol aims to further extend Bitcoin’s utility by facilitating the creation and trade of fungible tokens, effectively creating a mechanism for the deployment of low-cap BTC-linked projects using a simpler more streamlined model than BRC-20 tokens.
Like BRC-20s, Runes will use Bitcoin and pay fees in Bitcoin to create new tokens – however, there is a vital 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 on Solana and Base Protocol continue to rocket, there’s no denying it’s a lucrative 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. That 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 (previously known as StacksSwap) emerging as the leading L2 Bitcoin DeFi platform.
Stacks also has Arkadiko, a user-friendly platform for NFT minting and trading, having recently launched its 2.0 version.
Recently, the Stacks blockchain community has overwhelmingly endorsed the Nakamoto Upgrade, marking a significant milestone for Bitcoin.
This upgrade aims to address transaction speed issues by facilitating quicker processing times between Bitcoin blocks without compromising Bitcoin’s renowned security. One more thing of note is the introduction of sBTC, a wrapped version of Bitcoin that maintains a 1:1 value ratio.
Bottom Line: Major Catalyst Events Will Supercharge Bitcoin Halving Impact on Price
Bitcoin is often considered Grandpa crypto – it can’t compete with the ultra-scalable, high-speed, low-cost, blockchain solutions offered by Solana or BASE. However, that is changing thanks to the never-ending ingenuity and innovation of the Bitcoiner community.
The Bitcoin Halving impact on price is likely to form a continuation of the halving cycle chart – with the Bitcoin Rainbow Chart suggesting now 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 not only anticipating substantial price increases following the introduction of a reduced supply but also anticipating major growth triggered 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 does not constitute investment advice. You could lose all of your capital.
