Crypto
What is bitcoin halving and when will the next one be?
Bitcoin is surging after a rollercoaster few months after Donald Trump’s speech at a major cryptocurrency summit.
Trump spoke at the Digital Asset Summit (DAS) in New York on Thursday and bitcoin, by far the largest cryptocurrency, recovered much of its losses from recent months.
Bitcoin went over $100,000 (£77,200) for the first time in December 2024 but has since crashed down to $79,000 (£61,000) amid wider fears of economic turmoil caused by the Trump administration.
But ahead of Trump’s speech, the currency climbed back up to $86,000 (£66,400).
Speaking via video link from the White House Trump promised to make the US a bitcoin “superpower” and the “undisputed crypto capital of the world.”
He highlighted his administration’s actions on loosening regulations on the crypto industry, including ending what he called “operation chokepoint 2.0”, which saw federal agencies encouraging banks to not operate in risky sectors, particularly the crypto industry.
Trump said the operation went too far and acted as a form of “lawfare” against the industry.
The president has also instituted the US government’s Crypto Federal Reserve which will hold certain cryptocurrencies when they are acquired by state operations rather than sell them.
Despite the losses of recent months bitcoin has been on an incredible run in recent years after hitting a low of $16,000 (£12,300) in 2022. A lot of the recent gains have been associated with an event known as the Bitcoin halving that happened on 20 April 2024.
Halving is an event automatically triggered by the bitcoin network, which is designed to prevent inflation in the cryptocurrency but it can also trigger large price rises.
The halving happens roughly every four years and after each halving the following one to two years often see bitcoin’s price explode.
Aaron Peak, personal finance expert at credit reference company CredAbility, said: “Bitcoin is notoriously volatile: prices can surge or crash unpredictably, so investors should always be cautious.
“Bitcoin’s price has been on a rollercoaster recently, and we’ve seen some major price swings in recent months.”
What is Bitcoin halving?
Bitcoin halving reduces the rewards of mining the cryptocurrency by 50%.
Crypto miners use high-end computing rigs to perform calculations and are rewarded with bitcoin but after each halving, the reward decreases.
Miners complete calculations required to verify transactions, using computers to make guesses to solve the puzzle and the first to solve it adds a new block to the blockchain – a digital ledger that records and verifies transactions across a network of computers.
The dates of the halvings are not set, rather they occur every 210,000 blocks that are mined.
Aaron Peak, personal finance expert at credit reference company CredAbility said: “Right now, miners – who verify bitcoin transactions – earn 6.25 bitcoins for each new block they add to the blockchain.”
“After the next halving, their reward will drop to 3.125 bitcoins. This reduces the supply of new coins, which can affect bitcoin’s price.”
Why does it matter?
Bitcoin halving performs several important functions, restricting supply and limiting inflation, which helps to maintain the cryptocurrency’s value.
Peak explains: “Halving is important because it slows down how quickly new bitcoins are created. Historically, bitcoin halving has led to price increases. When fewer new bitcoins enter the market, but demand stays the same (or grows), the price often rises.
“It’s a bit like gold, if mining gold became twice as hard overnight, but people still wanted it, the price would likely go up. However, past performance doesn’t guarantee the same outcome every time, so there are no certainties.”
When is the next Bitcoin halving?
The next bitcoin halving event is expected to happen in 2028, but it all depends on how quickly miners create new blocks, Peak explained.
Peak said: “It will happen after another 210,000 blocks have been added to the blockchain, which usually takes around four years.
“This happens because bitcoin has a fixed supply – only 21 million bitcoins will ever exist. The process is built into bitcoin’s code to control inflation, a bit like how central banks manage the money supply, except no one can change bitcoin’s rules.”
Bitcoin halvings are expected to continue until 2040.
Key Takeaways
- U.S. strikes in Iran and IRGC retaliation in Kuwait threatened Qatar peace talks on Thursday.
- Bitcoin fell 3.6% to $72,622, wiping out $870 million in total long positions over 24 hours.
- The escalation will likely torpedo future diplomacy and embolden anti-settlement hardliners.
Geopolitical Escalation Triggers Crypto Sell-off
Bitcoin plunged below $73,000 early Thursday following reports of fresh U.S. military strikes inside Iran. Market data shows bitcoin tumbled to a multi-week low of $72,622—its lowest level since April 13—before staging a modest recovery back to $73,000. This downturn continues a weekly bearish trend, contrasting sharply with broader global markets that had previously rallied on optimism for a permanent peace agreement between the U.S. and Iran.
The sharp decline pushed bitcoin’s daily losses to 3.6%, dragging its market capitalization down to $1.46 trillion and pulling the aggregate crypto market cap below the $2.6 trillion threshold. Since May 25, when bitcoin last attempted to test the $78,000 resistance level, the asset has shed over 6% of its value. Despite kicking off May on an upward trajectory, this latest price action positions the cryptocurrency to close the month in the red.
Retaliatory Strikes Threaten Peace Talks
According to reports, the latest U.S. military strikes targeted a strategic site in the Iranian port city of Bandar Abbas. In retaliation, Iran’s Islamic Revolutionary Guard Corps (IRGC) reportedly launched strikes against a U.S. military base in Kuwait, where local authorities confirmed that air defense systems engaged incoming missiles and drones.
This escalation comes just days after the U.S. military struck Iranian naval vessels and an alleged missile launch site in Bandar Abbas, citing self-defense. Iranian forces responded at the time by downing U.S. drones. Notably, these hostilities unfolded while U.S. and Iranian negotiators were actively convening in Qatar to finalize a peace agreement. While the Trump administration initially downplayed the earlier friction to keep diplomatic channels open, this latest exchange will likely torpedo the talks and embolden hardliners on both sides who oppose a negotiated settlement.
Meanwhile, the decline in bitcoin and the broader cryptocurrency market resulted in the liquidation of more than $930 million in leveraged positions. Coinglass data showed that liquidations on bitcoin alone topped $366 million, with wiped-out long bets accounting for $348 million of that total. Overall, the market saw $870 million in long positions wiped out over 24 hours.
Bitcoin Slips to $74,530 as Long Traders Face $106M Wipeout
Bitcoin trended downward on Wednesday, dropping beneath the $75,000 threshold to trade at $74,570 at the time of writing. This…
Bitcoin Slips to $74,530 as Long Traders Face $106M Wipeout
Bitcoin trended downward on Wednesday, dropping beneath the $75,000 threshold to trade at $74,570 at the time of writing. This…
Bitcoin Slips to $74,530 as Long Traders Face $106M Wipeout
Bitcoin trended downward on Wednesday, dropping beneath the $75,000 threshold to trade at $74,570 at the time of writing. This…
HOLYOKE, Mass. (WWLP) – The Holyoke Police Department recently prevented a resident from falling victim to a Bitcoin scam and is urging community members to remain cautious of cryptocurrency fraud.
Holyoke Police Chief Brian Keenan stated that this recent scam involved a caller stating over the phone that the person had an active arrest warrant for missing jury duty. The scammer claimed that if the victim owed $6,000 or they would be at risk of arrest.
The victim was then instructed to withdraw money from a bank and take it to a local Bitcoin kiosk to deposit it. After depositing some money, the victim realized they were being scammed and called the Holyoke Police Department.
Detective James Parnell assisted the resident and canceled the transaction before it closed out. The victim is expected to receive a refund from the kiosk operator. In most cases involving these types of transactions, the money cannot be recovered, as it can be processed within minutes.
Holyoke Police say that these types of Bitcoin scams have defrauded western Massachusetts residents of more than $2 million in the past two to three years. If you receive a phone call claiming you owe money and must deposit cash into a Bitcoin kiosk, you are urged to immediately hang up.
Local News Headlines
WWLP-22News, an NBC affiliate, began broadcasting in March 1953 to provide local news, network, syndicated, and local programming to western Massachusetts. Download the 22News Plus app on your TV to watch live-streaming newscasts and video on demand.
Key Takeaways
- Sharplink and Forward join Russell indexes on June 29 with ETH and SOL treasury bets.
- Sharplink holds 874,351 ETH worth $1.8B, above its $1.22B market cap valuation.
- Russell inclusion may boost liquidity and institutional access for crypto treasury firms.
Crypto Treasury Firms Go Mainstream With Russell Index Inclusion
Sharplink Gaming is set to join the Russell 2000 and Russell 3000 indexes, marking a fresh milestone for publicly traded crypto treasury companies seeking wider acceptance in traditional equity markets.
The ethereum-focused firm disclosed that its inclusion will take effect on June 29, when Russell’s semiannual index reconstitution is implemented. The move places Sharplink inside two widely tracked U.S. equity benchmarks used by fund managers, exchange-traded funds and institutional investors.
Chief Executive Officer Joseph Chalom said the listing validates the company’s Ethereum treasury strategy.
Joining the Russell 2000 and Russell 3000 is a meaningful validation of Sharplink’s institutional-grade ETH treasury strategy, and we believe will broaden SBET’s shareholder base while strengthening our access to capital markets.
Sharplink holds 874,351 ETH, worth about $1.8 billion at current prices cited by the company. Even so, its shares trade below the value of its ethereum holdings. The company’s market capitalization stood at roughly $1.22 billion at the close of trading on Tuesday, May 26.
Sharplink’s index entry follows a similar step by Bitmine Immersion Technologies, the largest ethereum treasury company. Bitmine will be added to the Russell 1000, an index that tracks the 1,000 largest U.S. companies by market value.
Forward Industries, another crypto treasury firm, will also be added to the Russell 2000 and Russell 3000. The company has shifted from medical design into a solana-focused treasury strategy.
Forward bought $1.58 billion of SOL last year at an average price of about $232 per token. Solana has since fallen to $83.78, leaving the position down about 64% from the purchase price.
The company’s SOL holdings are now valued at around $588 million. That remains well above Forward’s market capitalization of about $350 million. At that level, Forward is still roughly 2.4 times larger than the Russell 2000’s smallest member, based on data from the index provider’s website.
Forward CEO Ryan Navi said the company expects index inclusion to broaden its investor base, improve liquidity, and raise its profile with long-term institutions.
Together, the additions show how crypto treasury firms are moving further into mainstream equity benchmarks. Russell indexes are tied to more than $12.2 trillion in benchmarked assets and investments, giving the included companies a larger stage even as questions remain over how markets should value their token-heavy balance sheets.
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