The modern economy has undergone a significant transformation with the arrival of Bitcoin. Exactly 12 years ago, the first halving occurred, a milestone that redefined the dynamics of the cryptocurrency market. Today, Bitcoin remains more relevant and valued than ever.
Satoshi Nakamoto established the halving event since the first Bitcoin block, scheduling a periodic halving of the miners' reward. This mechanism was already described in the original whitepaper, even before the creation of the cryptocurrency, also called digital gold by some.
12 years after the first halving, Bitcoin is still higher than ever
Reducing the incentive to mine regulates the supply of new Bitcoins and plays, above all, a fundamental role in limiting the supply of the main cryptocurrency on the market.
Ripio CEO and co-founder Sebastián Serrano says that these events (halving) clearly impact the market in 2024. Furthermore, in April of this year, the fourth halving occurred and, after a period of price consolidation and increased demand, in the last three months, this supply crisis sustained a moment of great growth for Bitcoin.
The price of BTC rose more than 80% between September 8th and its last all-time high on November 21st – from US$54,000 to more than US$99,650 – and is in a very interesting bull run, which could take its price above US$ 100 thousand in the short term, recalls Serrano.
Ripio, led by Serrano, has already been through three Bitcoin halvings (2016, 2020, 2024). He outlined an overview of the context.
Bitcoin Scarcity and Supply
Bitcoin is a scarce cryptocurrency. Thus, the maximum supply will be 21 million Bitcoins, of which more than 94% of the total has already been mined. However, so-called mining is the application of large computing power to validate, classify and record transactions on the Bitcoin network.
Data that Serrano brought mainly shows the strength of BTC. This is because in the first halving, more than a decade ago, the price of BTC was just US$12. In the second, in July 2016, it was already above US$660. The third, in May 2020, at the height of the pandemic , saw Bitcoin surpass $8,740. And in the most recent one, on April 19, 2024, the price closed at more than US$63,600.
Barely seven months have passed since this last episode, and Bitcoin is already eagerly seeking its sixth digit, he explains.
“It is clear that, along the way, in the three previous cycles (and in this one too), cryptocurrency has gone through ups and downs, more or less sharp corrections, more or less rapid increases. It is at these moments that windows appear to enter Bitcoin or to continue increasing holdings in BTC”, recalled the executive.
Upward price changes and opportunities with Bitcoin
Internal market factors, such as profit-taking by investors, rotation of positions by holders and the sale of reserves by miners after the halving, in addition to external factors, influence variations in the price of Bitcoin.
A recent example was Donald Trump's victory in the US presidential election, which sparked a positive reaction in the markets and boosted Bitcoin's appreciation between September and November. However, the main determinant of Bitcoin's price remains its code, with a limited supply of 21 million units and automatic halvings every 210,000 blocks, explains Serrano.
Sebastián Serrano also highlighted the approval of spot Bitcoin ETFs as a significant milestone. The new modality promises to attract significant demand, especially from large institutional and individual investors. For Serrano, Bitcoin continues to offer unique opportunities for those seeking exposure to the market.
According to Serrano, the 2024 halving also reinforces a macroeconomic perception: Bitcoin continues to offer new opportunities, both for investors who do not yet have exposure and for holders interested in expanding their positions.
The price trajectory is not linear, and while the big picture shows an ever-rising chart, in detail there are price fluctuations every day, every week, every month. These changes not only provide new inflows into Bitcoin, but also allow traders looking to accumulate BTC to make significant returns on their trades, concludes the CEO and co-founder of Ripio.
The article Bitcoin's first halving took place 12 years ago; Ripio CEO comments was first seen on BeInCrypto Brazil.
