Bitcoin Halving Cycle: What Will Investors Face?

BTC is down around 3% this week and is currently struggling to break above $27,000. It could mean further declines in the future. This drop may be part of a common pattern for Bitcoin halving events.

The Bitcoin halving occurs approximately every four years, with miner rewards halved in a move designed to slow the creation of new Bitcoins and manage inflation.

About 196 days before the past two halving events, Bitcoin prices fell by 25% and 38% respectively. With the next halving expected in April 2024, the market seems ready to adjust again.

Currently, Bitcoin is trading 60% below its all-time high, similar to previous halving cycles. For example, 200 days before the 2020 halving, Bitcoin prices were 60% below their peak. It was 65% below its peak 200 days before the 2016 halving.

What does this correction mean for BTC?

On-chain metrics also indicate that 95% of Bitcoin’s available supply did not change hands last month, suggesting investors are holding on to the cryptocurrency awaiting SEC approval for a spot Bitcoin ETF.

While it’s important to remember that past performance isn’t always predictive of the future, if this pattern repeats itself before the next halving, Bitcoin could indeed fall significantly. #一起来跟单