The Bitcoin halving is a scheduled mechanism designed to slow the rate at which new Bitcoins are produced by reducing the Bitcoin block rewards received by miners, thereby simulating scarcity and reducing inflation.

Block output halved over the years

Using history as a guide, the price changes of Bitcoin during historical “halvings”:

1. The first halving (2012):

- Date: 28 November 2012.

- Event: Bitcoin block reward reduced from 50 BTC to 25 BTC.

- Impact: Before the halving occurred, the price of Bitcoin was relatively stable. After the halving, Bitcoin began its first significant bull run, with the price rising from around $12 before the halving, reaching around $1,200 by the end of 2013.

2. Second halving (2016):

- Date: 8 July 2016.

- Event: Bitcoin block reward reduced from 25 BTC to 12.5 BTC.

- Impact: Before the halving, the price of Bitcoin increased from $270 in 2015 to around $650 in 2016. About a year and a half after the halving, the price of Bitcoin further increased to around $19,800. During this period, Bitcoin began to gain wider attention and gradually became the dominant cryptocurrency market.

3. The third halving (2020):

- Date: May 12, 2020.

- Event: Bitcoin block reward reduced from 12.5 BTC to 6.25 BTC.

- Impact: Before the halving, Bitcoin price rose from $3,600 in 2019 to around $9,000 in 2020. Within a year of the halving, Bitcoin prices experienced one of the most significant bull runs in history, with prices soaring to around $59,000. In addition, this halving is also accompanied by increased interest in Bitcoin from institutional investors and the rise of DeFi (decentralized finance).

4. The fourth "halving" is expected to arrive in the early hours of this Saturday UTC time!

Halving Market Comparison

Conclusion:

After each halving event, Bitcoin's inflation rate will decrease, which is often seen as one of the factors driving price increases. Although historical trends show that Bitcoin prices generally rise after halving, the short-term market reaction after each halving is independent and there are various uncertainties and technical changes. #比特币减半 #行情预测

So, what do you think will happen to the BTC market after this “halving”? Please share your thoughts in the comment section~