Bitcoin is up 80% since the start of the year

Bitcoin is almost a year away from a key technical shift that could catalyze a long rally in the cryptocurrency’s price.

In April 2024, BTC will undergo a so-called halving period, although the exact number has not yet been determined.

Bitcoin has been anticipating a halving over the past few weeks as a potential rate hike by the US Federal Reserve counters the outlook for slower growth, fueled by volatility in the banking sector.

One BTC is worth about $30,000. The world’s largest cryptocurrency is up more than 80% year-to-date.

The VP of Corporate Development and International Crypto Exchange said BTC is pushing above $30,000 amid banking instability and economic uncertainty.

Future rises due to Bitcoin halving

Bitcoin halving occurs approximately every four years. The event reduces the reward by 50% to BTC miners who manage specific equipment to transact on the network and explore new tokens.

Currently, Bitcoin miners receive 6.26 Bitcoins for each block. This indicates that their computer has the computing power to solve the cryptographic tasks securing the BTC network.

When the next bitcoin halving begins, this reward will return to 3,125 bitcoins.

Experts say this will help the price increase by promoting the scarcity of BTC.

The price of BTC rose by 19% in the previous 12 months, from $7,191.37 to $8,568.78.

During the 2016 halving, Bitcoin advanced 142% over the past 12 months, from $269.15 to $651.84.

The price of BTC is increasing even more in the months after the halving.

After the May 11, 2020 halving, the cryptocurrency advanced 688.31% in the next 546 days.

Before the halving on July 9, 2016, BTC skyrocketed by 2,825%.

Bitcoin had a difficult 2022, defined by the instability of large companies and projects.

Rising inflation has led to higher interest rates in the United States.

This has caused the prices of several top digital currencies to pull back sharply from their all-time highs.

Despite its recent advance to $30,000, BTC is still back more than 50% from its November 2021 high.