The 2024 Bitcoin Halving Explained: Key Factors for Investors

In 2022 and 2023, global orange production faced a trio of challenges—disease, hurricanes, and drought—that nearly halved yields. The devastation impacted Florida and São Paulo, regions that together produce over 85% of the world’s oranges. Orange juice enthusiasts quickly faced a classic economic scenario: a supply crunch, where demand outstrips supply, leading to higher prices. Consequently, the contract price for orange juice surged to an all-time high in October 2023, rising over 80% from October 2022 prices.

A similar supply crunch dynamic may soon affect another asset: Bitcoin. Every four years, Bitcoin undergoes a halving event, which reduces the rate at which new Bitcoin is created. Unlike orange trees, where increasing yield is possible by planting more, Bitcoin’s supply schedule is fixed and cannot be altered. The halving event has historically impacted Bitcoin’s price, but the factors surrounding the upcoming halving in April 2024 are particularly unprecedented.

This analysis will break down the mechanics of the halving, explain its potential impact on Bitcoin’s price, and review key considerations for the April 2024 halving.

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