The price of Bitcoin has fluctuated violently recently, and on April 14, it once fell below the integer mark of 60,000 US dollars. Affected by this, the crypto market once again ushered in a liquidation amount of over 100 million. As of press time, the price of Bitcoin has rebounded to 66,700 US dollars.
It is worth noting that there is less than a week left until the fourth Bitcoin halving, which will lead to a reduction in miner rewards and directly affect the circulation speed of Bitcoin.
Bitcoin halving cycle
Bitcoin halving usually occurs every four years or every 210,000 bitcoins produced. When Bitcoin halving occurs, the number of newly produced bitcoins will be reduced by half. In other words, the reward for miners to verify transactions and add them to the blockchain is reduced by 50%.
Bruce Fenton, CEO of Chainstone Labs, said: “One of Bitcoin’s most important features is its limited supply and issuance mechanism, which is why Bitcoin has become the world’s most popular cryptocurrency and one of the reasons why it is seen as a store of value more similar to gold than fiat currency.”
So far, Bitcoin has experienced three halvings.
The first halving: November 28, 2012, block height 210,000;
Second halving: July 9, 2016, block height 420,000;
The third halving: May 11, 2020, block height 630,000.
Forecasts show that the next Bitcoin halving date will be before April 20, 2024.
Halving accompanied by price increases
In terms of basic logic, a reduction in the rate at which new Bitcoins are produced may lead to scarcity, which may push up demand and thus lead to an increase in Bitcoin prices.
Historically, after the first three halvings, the motivation for Bitcoin mining has weakened, and the price of Bitcoin has risen sharply. The price of Bitcoin rose by 8,450% in 2012, 290% in 2016, and 560% in 2019. Click the main leaf to follow the official account: Bifangshe, and enter the group for free. After the next halving, the production cost of Bitcoin is expected to reach about $40,000.
Here is how BTC prices performed after previous halvings:
First halving: BTC price was around $12. One year later, it reached $1,100, a price surge of nearly 10,000% since the halving.
Second Halving: Bitcoin trades near $670. In December 2017, Bitcoin approached the $20,000 mark, a price increase of nearly 3,000% since the halving.
The third halving: BTC price hovered around $9,500. After that, it took Bitcoin a year and a half to reach $69,000, an increase of 725%.
Bitcoin ETF reduces selling pressure
Halving is often seen as a signal of the peak of a bull market, and the market will release a round of selling pressure before the event occurs.
Historical data shows that after the two halvings in 2016 and 2020, the price of Bitcoin experienced a sharp decline of about 30%.
However, this year is different. The Bitcoin spot ETF approved by the U.S. Securities and Exchange Commission (SEC) in January 2024 may affect the price trend of the currency after the halving.
In the first quarter of spot Bitcoin ETF trading, the total inflow of funds for 11 products approved by the U.S. Securities and Exchange Commission (SEC) reached about $12.1 billion, absorbing a considerable part of the potential selling pressure after the halving. Bitcoin ETFs have balanced the selling pressure brought by the Bitcoin halving to a certain extent by attracting new funds.
What opportunities are there in each track in the second half of the crypto bull market?
1: Top sports events such as the European Cup on June 15 and the Olympics in July usually start to hype up about 2 months in advance. SANTOS is the son of Anthony, Por is endorsed by C Ronaldo, and AGK is endorsed by Messi. They must be planned and may double in a month.
2: Ethereum Prague upgrade is coming! Ambush in advance $OP, $IMX, ETHFI, SSV, PENDLE, these coins will send you to the sky
3: Sol's annual conference will be held in September this year, $jup, $pyth, and $BOME will soar
4: There is news that GPT5 will be released in the middle of the year. On May 2, ocen, fet, and agix will announce the details of the merger. $RNDR, $WLD’s popularity and narrative will be directly released by Lafite.
5: ETC will reduce production in June, and there is speculation. Judging from the past production cuts, ETC will have a good round of growth before the production cuts.
