The Bitcoin Halving is approaching, marking a momentous occasion in the world of Cryptocurrencies. Historically, each halving has led to notable shifts in supply, demand, and price growth. However, given that Bitcoin‘s price has already reached a new record high before the halving, it’s worth pondering how this might influence post-halving trends. So let’s delve deeper.
What is the Bitcoin Halving?
The Bitcoin Halving is a regular occurrence approximately every four years in the Bitcoin system. Its primary purpose is to decrease the production of new bitcoins, making them more scarce and enhancing network security. Unexpectedly, it results in increased interest from investors and traders, leading to heightened market activity and significant price increases for Bitcoin.
At present, miners are adding approximately 900 new bitcoins to circulation daily while ensuring the network’s security. Following the next halving, this number is expected to decrease to around 450 new bitcoins per day. This significant shift in supply, combined with increasing demand, is a noteworthy development as the subsequent data will illustrate.
Past post-halving performance examined
The initial Bitcoin halving took place on November 28, 2012, when the price of BTC against the US dollar was approximately $10. In just one year, Bitcoin’s price soared by almost 10,000%, reaching over $1,200 per coin. At that time, Bitcoin was still a newcomer in the world of cryptocurrencies, and most people overlooked the significance of the halving on its price trend.
Four years after the second Bitcoin halving on July 9, 2016, cryptocurrencies were not yet widely recognized. Nevertheless, new altcoins were picking up steam, and the Bitcoin community was starting to establish itself. Sixteen months later, in late 2017, the price of a single BTCUSD coin surged from $570 at the halving event to almost $20,000, which represented an impressive 3,400% increase following the halving.
By the third bitcoin halving, which occurred on May 11, 2020, people began to notice the connection between Bitcoin’s price and its proximity to the halving event. This happened around the same time as the COVID-19 pandemic and massive money supply increases, creating an ideal situation for Bitcoin and investors. Within a year, Bitcoin’s price jumped from under $9,000 to over $65,000 per coin – a significant increase in US dollars but only a 625% gain compared to previous increases of 3,400% and 10,000%. This set the stage for potentially smaller returns in the future.
Why the 2024 Bitcoin Halving could be different
The Bitcoin Halving is predicted to occur around mid-April in 2024, making it a significant milestone in crypto’s timeline. Contrary to the warning that “this time is different” is risky in investments, the situation with Bitcoin truly sets itself apart from history.
Prior to every major bull market, Bitcoin had not reached a new record-breaking price beforehand during the halving events. However, in 2024, Bitcoin has already achieved a new all-time high. This could indicate that the performance will continue to decline or be unexpectedly explosive, leading to even higher prices per BTC.
Each Bitcoin Halving brings more awareness among market participants about its significant influence on price increases. This scheduled event is publicly announced, and in 2024, savvy investors like smart money, whales, and institutions might have anticipated the potential gains and acted beforehand.
It’s yet uncertain if a decrease in performance will result from this halving. But, the diminished number of newly minted Bitcoins for miners is expected to tilt the scale between supply and demand towards greater price increases following the event.
Factors fuelling increased profit potential in Crypto
In simpler terms, the introduction of Bitcoin spot ETFs in the US is significantly contributing to the current high Bitcoin prices before the upcoming halving event. These ETFs have been purchasing around ten times the newly mined Bitcoins, and after the halving, this could potentially double if demand for these ETFs continues to grow.
With retail investors being exposed to the news of Bitcoin’s upcoming halving through various media outlets and social platforms, there’s a possibility for its price to surge further despite already surpassing its previous all-time high of $68,000 per coin in 2021.
Trading Bitcoin with PrimeXBT
After the Bitcoin Halving, there’s a chance for substantial price increases and market fluctuations. Traders can take advantage of these market swings using PrimeXBT’s Crypto Futures. PrimeXBT is an adaptable trading platform ideal for both novice and experienced traders. The platform boasts the lowest fees for Crypto Futures, starting at 0.01%, enabling traders to earn more profits.
With PrimeXBT, traders can skillfully handle risk and maximize profits through its sophisticated margin features, offering leverage of up to 200:1. The platform’s swift trade execution guarantees prices as displayed with no subsequent price adjustments. Additionally, PrimeXBT equips traders with a variety of tools and educational materials to enhance their abilities and make well-informed trading choices.
Conclusion
The Bitcoin Halving is an eagerly awaited occurrence in the world of cryptocurrencies. Historically, this event has been followed by substantial price increases and market turbulence. Before the 2024 halving, Bitcoin has reached new peak prices. As a result, the post-halving period could see even more remarkable growth than we’ve seen before. For traders aiming to profit from these market fluctuations, PrimeXBT’s Crypto Futures platform is an excellent choice.
With PrimeXBT, enjoy a user-friendly platform that caters to traders of all experience levels, featuring minimal fees, sophisticated tools, and instructional materials. The intuitive design and streamlined sign-up process enable even beginners to quickly get started and manage their financial affairs confidently.
Experience the future of online trading and secure your place in the Crypto market with PrimeXBT.
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2024-04-11 16:52