YEREVAN (CoinChapter.com) — In the days leading toward the 2024 Bitcoin halving, the global cryptocurrency user base surged to nearly 580 million, a significant increase from 100 million just four years earlier, according to reports from the Cambridge Centre for Alternative Finance and Crypto.com.
The surge appears due to multiple factors, namely global central banks’ easing policies and the launch of Spot Bitcoin exchange-traded funds (ETFs) in the U.S. As a result, Bitcoin’s price surged to a new record high in March 2024, just about three years after establishing the previous one.
This shift in the cryptocurrency market is unprecedented in previous cycles, where new all-time highs typically emerged months after a halving event.
Miners in a Stronger Position
According to Chris Kuiper from Fidelity Digital Assets, miners are now better equipped financially and have greater control over costs like electricity. The spike in Bitcoin’s price before the halving has provided them with a much-needed boost to maintain profitability.
Innovative Growth in Mining Sustainability
Despite a nearly doubled energy demand, rising to 99 Terawatt hours, the shift towards sustainable practices is evident.
Bitcoin miners now heavily rely on renewable energy sources, which make up 54.5% of their energy consumption as of January 2024, a significant increase from 39% in 2020, reports the Bitcoin ESG Forecast.
First Halving Following U.S. Spot Bitcoin ETF
2024 stands out as the inaugural year for Bitcoin ETF trading in the U.S., opening the gates for institutional investors. The success was immediate and immense. Eric Balchunas from Bloomberg noted that the combined holdings of ten spot Bitcoin ETFs grew by 220,000 BTC, valued at around $14 billion.
BlackRock’s spot Bitcoin ETF leads the charge in the BTC ETF sphere, boasting a staggering surge in holdings of over 10,000%, soaring from an initial 2,621 BTC at its launch to an impressive 273,140 BTC by April 18.
Bitcoin has not only grown in user base and price but also in security and decentralization. The geographical spread of mining activities has diversified immensely since 2020. The U.S., China, and Russia are now leading in mining distribution, ensuring a more secure and resilient network.
Miners are steadily moving to Africa and Latin America, drawn by lower electricity costs. Mellerud observes this ongoing trend toward geographic diversification. Moreover, the Bitcoin blockchain’s robustness against attacks has significantly improved, with its hash rate quintupling since the last halving.
As the Bitcoin network evolves, so does its impact on the global economic landscape. The 2024 halving has set new precedents in user engagement, price dynamics, and sustainable mining practices, marking a milestone year for the cryptocurrency.
