The Bitcoin Halving: How the 2024 Event Contributed to Bitcoin’s Surge Beyond $90,000

Bitcoin has always been a fascinating asset, both for its innovative technology and its ability to attract global attention with its dramatic price movements. One of the most significant events that can influence Bitcoin’s price is the Bitcoin halving — a scheduled reduction in mining rewards that occurs roughly every four years.

The most recent halving, which took place in April 2024, has played a pivotal role in Bitcoin’s remarkable price surge, pushing it past $90,000 — an all-time high for the cryptocurrency. But while the halving itself is a key event, it's not the only factor contributing to Bitcoin’s price explosion. The U.S. presidential election, the approval of the Bitcoin ETF, and other macroeconomic events have also played crucial roles in this historic rally.

In this article, we’ll explore what Bitcoin halving is, how the 2024 halving impacted Bitcoin’s price, and how it combined with other events to drive Bitcoin to new heights.

What is Bitcoin Halving?

Before diving into how the recent halving impacted Bitcoin’s price, let’s take a quick look at what Bitcoin halving is and why it’s so important.

Bitcoin halving is an event that happens approximately every four years (or every 210,000 blocks mined), where the reward that Bitcoin miners receive for adding a new block to the blockchain is cut in half. This mechanism is part of Bitcoin’s design to create scarcity and ensure that the total supply of Bitcoin never exceeds 21 million coins.

When Bitcoin was first created in 2009, miners were rewarded with 50 BTC per block. After the first halving in 2012, the reward dropped to 25 BTC, then 12.5 BTC in 2016, and 6.25 BTC in 2020. The most recent halving, in April 2024, reduced the block reward to just 3.125 BTC. This cut in supply is one of the core drivers behind Bitcoin’s potential price increases — as fewer new coins are mined, demand often pushes the price higher, especially if adoption continues to grow.

The 2024 Bitcoin Halving: A Catalyst for Price Growth

Historically, Bitcoin’s price has tended to increase after each halving event. This is because of the combination of reduced supply (fewer new coins being minted) and increased demand, especially as Bitcoin becomes more widely accepted. The April 2024 halving was no different in that regard. However, it came at a time when several other macroeconomic and market events converged, creating a perfect storm for Bitcoin’s price to surge.

1. Scarcity and Supply Pressure

With the 2024 halving reducing the number of new bitcoins entering circulation, the dynamics of supply and demandbegan to work in Bitcoin’s favor. With fewer new bitcoins being mined, the overall supply of the cryptocurrency tightened, even as demand continued to rise. This scarcity is a fundamental economic driver that often leads to price increases.

In the past, each halving has led to a post-halving price rally. The halving event signals to the market that Bitcoin’s inflation rate has decreased, making it a more scarce and potentially valuable asset over time. The 2024 halving was no exception, and it set the stage for the next big Bitcoin rally.

2. The Impact of the U.S. Presidential Election

While the halving itself was a key event, the timing of Bitcoin’s rise was also influenced by the 2024 U.S. presidential election. Elections in the U.S. often bring uncertainty and volatility to global markets. As the election cycle intensified, there was an increased interest in alternative assets, including Bitcoin, which is often seen as a hedge against inflation, government interference, and economic instability.

In 2024, political uncertainty, particularly regarding potential fiscal policies and regulation, prompted many investors to look at Bitcoin as a safe haven for their assets. As traditional financial markets showed signs of instability, Bitcoin’s appeal as a decentralized and transparent financial asset grew, helping to fuel the demand.

3. Approval of the Bitcoin ETF

Another pivotal factor in Bitcoin’s price surge was the approval of the Bitcoin Exchange-Traded Fund (ETF), which became a reality in 2024. The approval of a Bitcoin ETF allowed institutional investors and mainstream retail investors to gain exposure to Bitcoin without the need to directly purchase or manage the underlying cryptocurrency. This opened up a massive pool of capital to enter the Bitcoin market, and with it, the price of Bitcoin experienced an upward surge.

The Bitcoin ETF provided a more regulated and mainstream-friendly avenue for investment in Bitcoin. It served as a validation of Bitcoin’s legitimacy in the eyes of traditional financial institutions and investors. The increased institutional involvement, combined with retail interest, added significant buying pressure to Bitcoin, pushing the price to new all-time highs — beyond $90,000 in some cases.

The Bitcoin Price Surge: Beyond $90,000

As a result of the 2024 halving and the confluence of other events, Bitcoin’s price broke through the $90,000 mark for the first time in history. This price surge was fueled by a combination of factors:

• Scarcity of Supply: The halving reduced the block reward, making Bitcoin even more scarce and driving up its value.

• Increased Demand: The political uncertainty surrounding the 2024 U.S. election and the approval of the Bitcoin ETF attracted new investors, both retail and institutional.

• Growing Adoption: The ongoing adoption of Bitcoin by businesses, payment platforms, and even some governments added to the overall demand, pushing the price upward.

While Bitcoin’s price has been volatile, and there are always risks involved in investing in cryptocurrencies, the recent price surge shows how significant events like the halving, regulatory approvals, and broader macroeconomic factors can have a profound effect on its value.

Looking Ahead: What’s Next for Bitcoin?

The Bitcoin halving events are programmed into the network, and they will continue to occur roughly every four years until the total supply of Bitcoin reaches its maximum limit of 21 million coins. While halvings have historically been a precursor to price increases, it’s important to remember that past performance does not guarantee future results.

The next halving is set to occur in 2028, but for now, the 2024 halving remains a milestone in Bitcoin’s journey. As the cryptocurrency continues to mature and gain acceptance, we may see even more macroeconomic events and institutional developments that further influence its price.

Conclusion

The April 2024 Bitcoin halving played a crucial role in pushing Bitcoin’s price to new heights, surpassing $90,000. This, combined with the political uncertainty surrounding the U.S. election and the approval of the Bitcoin ETF, helped create a perfect storm of demand for the cryptocurrency. These events demonstrate how Bitcoin’s price is influenced not just by its supply mechanics, but by broader economic and market factors.

If you want to learn more about Bitcoin halving, its historical effects, and what it means for the future of Bitcoin, make sure to check out our dedicated article where we dive deeper into this event and its potential long-term impact on the market.