Glassnode, a well-known data provider in the cryptocurrency space, has disclosed its calculation for the approximate date of the next Bitcoin halving event, which is scheduled for April-May 2024. Although the crypto community has speculated about the potential month, Glassnode’s metrics-based calculation provides a more accurate timeframe, sparking anticipation in the crypto world.
Determining the Numbers: Glassnode’s Unique Approach
Glassnode recently revealed its methodology for determining the number of days until Bitcoin’s fourth halving in a publication. Utilizing Bitcoin’s 14-day average interval, Glassnode estimates that the upcoming reduction in Bitcoin miner rewards is approximately 130 days away, pinpointing April 23 as a potential date for the halving event.
The cryptocurrency community is brimming with expectations regarding the upcoming halving, considering Bitcoin’s historical performance following such events. Each of the previous three halvings was followed by significant price increases, with the latest halving in 2020 sextupling the value of Bitcoin.
The cryptocurrency reached an all-time high of $65,000 in April 2021 and climbed to $69,000 in October of the same year. The halving mechanism, which occurs every four years, aims to make Bitcoin more deflationary by halving the amount of Bitcoin mined by miners.
Beyond the Halving: Factors Influencing Bitcoin’s Trajectory
While the halving undoubtedly plays a role in shaping Bitcoin’s trajectory, experts emphasize external factors. Some argue that the US Federal Reserve’s monetary policy in response to the pandemic had a significant impact on Bitcoin’s rise to $69,000 in 2021. Households and companies received injections of money exceeding six trillion dollars in 2020.
In addition, influential figures like Elon Musk also played a significant role. Tesla’s announcement of a $1.5 billion investment in Bitcoin and its acceptance of cryptocurrency for car payments created a notable impact. However, Musk’s subsequent retraction of Bitcoin payments due to environmental concerns related to Proof of Work (PoW) mining added a new layer of complexity to the narrative.
Tesla’s later decision to sell off a significant portion of its Bitcoin holdings adds further intrigue to Bitcoin’s future trajectory. As Glassnode continues its countdown to the halving, the crypto community eagerly awaits to see how these dynamics will shape the cryptocurrency’s journey in 2024.
