Fourth Bitcoin Halving Completed – Here Are The Implications

Scott Matherson

1 year ago

4 mins read

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The long-awaited fourth Bitcoin halving finally occurred after BTC posted its 840,000th block. This event is significant as it is expected to have several implications for the Bitcoin ecosystem and the crypto market going forward.

What To Expect Following The Bitcoin Halving

The Bitcoin halving slashed miners’ rewards from 6.25 BTC to 3.125 BTC for each block mined. This means that Bitcoin miners are set to earn a reduced income of 450 BTC instead of the 900 BTC they earned before the fourth halving. This development is expected to have a dire effect on their operations, as NewsBTC reported that they could lose a whopping $10 billion following the halving.

While the effects of the halving are not so pleasant for BTC miners, the halving is deemed necessary for the growth of the Bitcoin ecosystem. It makes Bitcoin (BTC) deflationary by reducing the rate at which more tokens come into circulation. This could make the flagship crypto more scarce and ultimately drive up its value, as it has done in the past three halvings.

In anticipation of history repeating itself, crypto analysts and experts have made several predictions about how high Bitcoin could rise this time post-halving. So far, the most bullish price prediction remains by Samson Mow, the CEO of Jan3 and Bitcoiner, who predicts that the flagship crypto could rise to $1 million this year.

He added that this unprecedented price surge was possible considering that BTC’s demand is expected to continue outpacing the supply, with more institutional investors recently getting on board through the Spot Bitcoin ETFs. The imbalance between Bitcoin’s supply and demand is also why crypto analyst MacronautBTC believes Bitcoin could rise to $237,000.

Billionaire Tim Draper also agrees that Bitcoin could attain such heights based on his prediction that the flagship crypto will hit $250,000 in 2025.

Implications On The Broader Crypto Market

Crypto analyst Michaël van de Poppe recently predicted a narrative shift post-halving. He expects Bitcoin to take months to consolidate while altcoins significantly move to the upside during this period. This is plausible, considering Bitcoin doesn’t experience that parabolic price surge until about six months after the halving.

During this period, altcoins like XRP and Cardano (ADA), which have underperformed up until now, will be closely monitored as investors wait to see if they will show any sign of bullish momentum in them. Ethereum (ETH) will also be the focus of many in the crypto community as they watch how the second-largest crypto token by market cap will perform while Bitcoin (BTC) consolidates.

Interestingly, Van de Poppe expects the narrative to shift to Ethereum and projects in the Decentralized Physical Infrastructure Networks (DePIN) and Real World Assets (RWA) sector. Therefore, such projects are also worth keeping an eye on.

BTC bulls hold price above $63,000 | Source: BTCUSD on Tradingview.com

Featured image from Cointribune, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

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