Bitcoin halving 2024: 5 ways it’s different this time

The 2024 halving of Bitcoin is different from previous ones, but it will likely be followed by a price spike, as has been the case with prior halvings. But this particular half has some special characteristics that make it different from the others.

The crypto user base has increased by at least 400% since 2020’s halving.

Even though Bitcoin is the first and largest cryptocurrency, its user base has decreased over time. Still, there is a growing general interest in cryptocurrencies. Approximately 400 million new members of the worldwide cryptocurrency community have joined since 2020.

Approximately 100 million people owned cryptocurrencies in the globe in 2020. By the close of 2023, this figure had increased to approximately 580 million.

Despite its notoriety, Bitcoin’s user base is smaller than that of all other cryptocurrencies combined. About 219 million people, or 2.7% of the global population, will Bitcoin owners by 2024. The expected number of Bitcoin users four years ago is more than twice as much as this. However, it’s difficult to identify a specific amount of Bitcoin users. It is difficult to determine

The 2024 pre-halving Bitcoin rally has not been seen before

The major price increase that took place before the 2024 occurrence is one key difference between the fourth Bitcoin halving and the previous three. In previous cycles, the halving of Bitcoin was usually followed by large price gains, with new all-time highs being achieved about a year later. For example, Bitcoin didn’t reach its prior all-time high of $20,000 during the 2020 halving until almost ten months after the event.

But in this cycle, just before the halving, Bitcoin reached all-time highs, peaking at $73,600 on March 13, 2024. This pre-halving breakout is a divergence from past patterns and is unprecedented. Analysts recognize this exceptional event, including Simon Peters, eToro’s crypto expert.

Miners ‘better shaped’ for halving this time

The unexpected Bitcoin price rise before the halving could have a favorable impact on the mining business, giving miners more control over mining costs. Since the third halving in May 2020, Bitcoin mining energy consumption has skyrocketed, rising from approximately 50 Terawatt hours (TWh) to 99 TWh on April 18, 2024.

At the same time, the amount of energy consumed by the Bitcoin network from sustainable sources has increased, with renewables accounting for 54.5% of BTC mining usage in January 2024, according to the Bitcoin ESG Forecast. The percentage was at 39% in September 2020, according to CCAF data.

First Bitcoin halving with spot BTC ETFs in the U.S.

The fact that this is the first Bitcoin halving in history to occur with BTC exchange-traded funds (ETF) enabled in the US is among the easiest things to understand about the 2024 halving. After years of planning, spot Bitcoin ETFs began trading in January 2024, providing institutional investors with exposure to Bitcoin. According to Bloomberg ETF analyst Eric Balchunas, spot Bitcoin ETFs have seen “blockbuster success,” reflecting a surge in Bitcoin demand.

The aggregate holdings of all ten spot Bitcoin ETFs have climbed by at least 220,000 BTC since the start of trading. Out of the ten Bitcoin exchange-traded funds (ETFs), BlackRock’s top-ranked Bitcoin ETF has seen the most inflows; its holdings have increased by over 10,000%, from 2,621 BTC at the beginning of trading to 273,140 BTC on April 18.

Bitcoin became more globally decentralized and secure

 Bitcoin’s decentralization and network security have also greatly improved. Bitcoin has become a more spread network since 2020 when the majority of new Bitcoin mined in Mainland China.

About 80% of the world’s Bitcoin mining hash rate accounted for by Chinese miners just four years ago.

According to Hashlab Mining creator Jaran Mellerud, as of February 2024, the United States accounted for 40% of the global hash rate, followed by China and Russia with 15% and 12%, respectively, as the leading Bitcoin mining nations.

Furthermore, since the last halving, the hash rate of the Bitcoin blockchain has increased five times, making it more resilient to attacks.