Bitcoin Halving: What Is It and Why 2024 is Expected to Be A Momentous Year for The Crypto Market?

Every four years, Bitcoin lowers by 50% the reward miners receive for validating network transactions, significantly increasing BTC value and typically having a dramatic impact on the crypto market. The event, known as halving, is likely to occur in April 2024, which makes next year one of high expectations for the industry.

Added to this is the expected approval of a Bitcoin exchange-traded fund (ETF), which—apart from bumping up BTC's price—could lead to a massive entry of institutional investors into the market, boost liquidity, and improve transparency. Ultimately, Bitcoin ETFs will empower cryptocurrencies that follow regulations.

How High Can BTC Go After Halving?

Following the first Bitcoin halving in 2012, the price of one BTC shot up from $12 to $126 (950%) in six months. When the second halving occurred in 2016, Bitcoin was trading at $654, reaching $1,000 within seven months, representing an increase of 52.91%. In 2020, prices rose from $8,570 to $18,040 (110.5%).

The question now is: What will the BTC price be after the 2024 halving? Algorithm estimates vary; however, the projection is usually set around a 50% rise in the first month post-halving, with the possibility of reaching $70,200, followed by a one-year rally to a new all-time high of

$175,000.

Halving cycles are part of a mechanism designed to counteract inflation on the digital currency. Bitcoin halving occurs once every 210,000 blocks and is expected to continue until it reaches its maximum supply of 21 million BTC. Presently, 19 million BTC have been mined.

How Does a Bitcoin Halving Affect Other Cryptocurrencies?

Although halving events have historically benefited Bitcoin because of the trading frenzy surrounding the coin, they are also associated with heightened market volatility, according to NASDAQ. Investors and speculators closely watch the dynamics around this event, leading to price fluctuations. That together could serve as a catalyst for significant price movements not only for Bitcoin but also for other altcoins.

It is also an opportunity to increase cryptocurrencies' visibility and verify them as store of value assets.

Are There Less Volatile Options?

Although traders use the volatile nature of crypto to generate profits, volatility is the most common argument against digital currencies in general. In contrast, new digital currencies have emerged as more stable options, drastically reducing the impact of price fluctuation.

Unicoin is backed by a $1.3 billion portfolio that includes real estate and fast-growing company shares. Those assets reinforce the coin's solidity against market oscillation. It also brings innovation to the investment environment with the launch of the 140 program, allowing investors to exchange properties for cryptocurrencies and receive an extra 40% on the appraisal value. Unicoin is an alternative for those who want to reduce risk by diversifying their portfolio with assets other than Bitcoins.

However, it is worth noting that external factors, including changes in national laws and technological advances, could change halving results in unpredictable ways, making it critical for investors to conduct their research.