As the cryptocurrency market continues to evolve due to its unique settings, Bitcoin (BTC) remains at the forefront of discussion. Driven by the halving event, Bitcoin's unique economic model has attracted the interest of the entire financial community
As the cryptocurrency market continues to evolve due to its unique settings, Bitcoin (BTC) remains at the forefront of discussion. Driven by the halving event, Bitcoin's unique economic model has attracted the interest of the entire financial community.
Since the birth of cryptocurrency 14 years ago, the Bitcoin network has only experienced three halving events. In fact, according to data provided by encrypted content creator Shalva Machitidze, Bitcoin has experienced a total of 32 halving events, with the remaining 29, and people's attention is focused on how assets will be affected.
It is worth noting that due to its scheduled issuance schedule, halving is one of the key features that distinguishes Bitcoin from traditional fiat currencies. It is worth noting that approximately every four years, or every 210000 blocks mined, the rewards for miners confirming transactions and adding them to the blockchain will be reduced by half.
In the early days of Bitcoin, miners could earn 50BTC per block, but after the first halving in 2012, this reward was reduced to 25BTC. The subsequent halving event occurred in 2016 and 2020, with rewards reduced to 12.5BTC and 6.25BTC, respectively.
In addition to reducing miner rewards, the halving event will also affect the number of tokens in circulation. This will affect supply and demand, leading to price fluctuations. In addition, it also suppresses Bitcoin inflation by reducing the creation of new coins, consistent with its deflationary design.
What to expect from the remaining 29 Bitcoin halving events
Among the remaining 29 halving events, the scarcity of Bitcoin bookings is often considered one of the main factors leading to the potential appreciation of the asset's value. This scarcity, coupled with growing demand, has always driven up the price of Bitcoin.
Historical data shows that after the previous halving event, the price of Bitcoin has experienced a significant increase. After the first halving in 2012, the price of Bitcoin skyrocketed from less than $12 to about $1000 within a year. Similarly, after halving in 2016, the price of Bitcoin significantly increased to $20000 by the end of 2017.
The most recent halving occurred in May 2020, when the price of Bitcoin soared from approximately $8000 to nearly $69000 by the end of 2021. These historical patterns have sparked investor optimism as the focus for the next step.
Will the next halving event trigger a price increase?
It is worth noting that past halving events have not only triggered a bull market. Greater macroeconomic factors may have played an important role, especially the favorable legal liquidity conditions brought about by institutional capital inflows into assets. For example, in the past year, Bitcoin has been hit by high inflation and interest rate decisions.
After the past three halving events, the price of Bitcoin has experienced a significant three-digit increase, reaching a historic high within 12 to 18 months, and then entering a significant downward trend.
Interestingly, these bear markets begin to lose momentum approximately 15 to 16 months before the subsequent halving. For example, Bitcoin rose nearly 55% in 2023, rebounding from the bear market of the previous year. This trajectory is consistent with the historical timing of price recovery before.
Bitcoin Price Analysis
Bitcoin remains stable above the level of $26000 and is expected to rebound to $30000. As of the time of publication, the leading cryptocurrency trading price was $26608, with a daily increase of approximately 0.31%.
Generally speaking, the cryptocurrency market is highly speculative and volatile, and past performance may not necessarily predict future outcomes.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
