Satoshi Nakamoto, the creator of the world's largest blockchain network, designed an event that occurs every four years to determine the inflation rate for creating new BTC. This event is called a “halving” which cuts in half the rewards miners receive for their work on the network. 🎁
Analysis shows that Bitcoin prices do increase in the months after each halving. Whether this is due to hype or people actually buying more as production rates slow is uncertain. However, each new low is higher than the previous cycle's low.
A popular crypto analyst, Mags, formulated a strategy that people can follow if they want to take advantage of this cycle. The strategy is simple: 1) Buy Bitcoin 500 days before the Halving 2) Hold & Do Anything 3) Sell 500 Days After the Halving 4) Repeat.
Their charts show that the BTC price bottoms out around 500 days before each halving and peaks 500 days after its completion.
However, keep in mind that this strategy is aimed at those who wish to speculate on BTC price movements before and after each halving. History does not guarantee future price movements, so investors should do their own research before jumping into any investment. What do you think about this strategy? Share in the comments column! 😊