Today, Binance- the world-leading crypto exchange posted on its official twitter handle about the exciting countdown for the Bitcoin Halving. As per the post, there are two hundred nineteen days left for the next Bitcoin Halving event. The Bitcoin Halving will take place on the Block Number- 630,000. Ideally, it should reach this bock number by May 24, in the coming year. The last observed Bitcoin Halving event was on the block number 420,000 on July 9, 2016. At this point, the Bitcoin block reward went down from 25 BTC to 12.5 BTC.
As per Binance Academy’s countdown, the ongoing Block Height of the world’s largest crypto is 593,994, whereas the block until halving is 36,006 as per the press time. The website also revealed the current market rate of BTC, which is 10,234.82.
Well, Bitcoin Halving is an event in which the number of Bitcoin rewards which are generated gets divided by two. As per sources, the number of BTC mined based on every block will go down from 12.5 to 6.25 BTC in the upcoming halving event. This will, in turn, make the number of BTC less and less in every block, and thus the BTC total supply will be 21 million.
The halving brings out effects such as- market volatility which makes it an important period for the traders. For the miners, on the other hand, the Bitcoin Halving event translates to lower mining rewards.
What can we expect from BTC 2020 Halving?
Future holds many things that one can’t fully foresee beforehand, and so is the case with the predicting fully about what would happen during the Bitcoin halving the next year. This also opens the room for all kinds of responses and predictions. Market analysts predict the future referring to the past performance of the crypto.
- A pattern has been observed that the crypto price movement shows sharp action before the market becomes bullish in nature. For instance, back in 2011, the bearish trends landed at 70 dips, whereas the bear market in 2013 ended up with correction of 86 percent. In a similar light, the latest one resulted in 84 percent decline from its highest notes.
- Also, another observation is that a steady upward movement comes in play as the Bitcoin retraces many times during the bull markets. For instance, back in 2011, the BTC was at the low of 2.01 U.S. Dollars, whereas only within two years of time in 2013, it retraced itself to 268.67 U.S. Dollars. These two retracements had an average of 47.8 percent.
- Looking at the period of 2015 to 2017, BTC showed up with eleven corrections that averaged at 34.6 percent.
- In recent times, i.e., in Dec. 2018, the crypto was at the low of 3,148.33 U.S. Dollars, and since then it had four main retracements that had 23.90 percent as average.
- As the halving event approaches, by far the world’s largest crypto has not managed to reach the all-time high.
- The recent two-block rewards reductions have resulted in the rate of the crypto to be more parallel to the stock to flow model. As per this model, the BTC should trade at 9,400 U.S. Dollars during the coming 2020 halving event.
- Another interesting point to keep in mind is that the halving will have an upwards effect on the BTC market valuation. The market analysts predict this in terms of BTC behavior during the first halving event. During the first one, the crypto coin rose to 80 times. And, on the other hand, the second halving event resulted in a surge of 28.70 times.