The Bitcoin blockchain experienced its fourth halving on April 20, 2024, cutting the mining reward per block from 6.25 BTC to 3.125 BTC. Historical data suggests that the benefits of halving events typically emerge after 100 days. This halving-induced supply reduction is expected to start impacting the market around this time, showing significant price growth potential.
Bitcoin’s halving events occur every four years, a mechanism designed to control the supply of Bitcoin, ensuring its scarcity is maintained. The total supply of Bitcoin is capped at 21 million, and these halving events help to slow down the rate at which new coins are introduced, bringing the supply closer to the cap in a controlled manner. Past halvings have shown that Bitcoin’s price tends to rise substantially within 100 days following the event.
Research indicates that the market performance 100 days post-halving is statistically significant, often with a T-value exceeding 2. This trend suggests that the growth in Bitcoin’s market performance may continue to strengthen over the next 400 days, potentially leading to new price peaks. Investors are thus anticipating an accelerated rise in Bitcoin prices, driven by the halving-induced supply deficit and reinforced by historical trends.
