The crypto market is enthusiastic, with just 12 days remaining until Bitcoin’s fourth Halving. This historic event, set to occur on April 20, 2024, marks a significant milestone in Bitcoin’s journey, impacting its economy and generating excitement among investors.
However, historical data suggests that Bitcoin’s value has surged after each halving, sometimes reaching remarkable gains of up to 8,000%. An analyst in his X post opens the trail of past events where BTC has surged due to halving. Let’s Dive in.
Historical Performance
Bitcoin’s previous halvings have seen remarkable price surges, reflecting the event’s profound effect on the network’s dynamics. The first halving in November 2012 saw Bitcoin’s price jump by a staggering 9,500% within a year, from $12 to $1,166. Similarly, the second halving in July 2016 triggered a bull run that pushed Bitcoin’s price to nearly $20,000, representing a 4,100% increase.
Even in the COVID-19 pandemic, the third Halving in May 2020 has also seen a significant price surge, with Bitcoin reaching an all-time high of $69,000 by November 2021, marking a 700% increase from its pre-halving levels. But experts say this year it will be different.
What’s New?
Unlike previous events, Bitcoin has already surpassed its previous all-time high of $69K ahead of the fourth halving. Despite this, the upcoming event has high expectations, with analysts closely monitoring its potential impact on Bitcoin’s price trajectory.
Making things more interesting, renowned analyst PlanB predicts further price increase, with Bitcoin hitting $100,000 this year and surpassing $200,000 in the future, based on his Stock-2-Flow (S2F) model.
Expected Crypto Impact
Moreover, the fourth halving event in Bitcoin has three main effects. First, it lowers the amount of new Bitcoin made each day, making it more like gold and reducing its inflation. Second, it speeds up Bitcoin’s scarcity because there are only 21 million Bitcoins to mine, which could make people want it more and increase its price. Lastly, it encourages miners to use better equipment to mine Bitcoin, making the network more secure.
What to Expect?
Historically, the price of Bitcoin has experienced a significant increase in the months following the Halving. However, it is important to remember that the cryptocurrency market is volatile and cannot predict the future with certainty. Some experts predict that the 2024 halving could propel the price of Bitcoin to new all-time highs. Others believe the impact will be more gradual, with a sustained price increase.
Regardless of the immediate impact, the 2024 Halving is a major milestone in Bitcoin’s history. This event is all about the cryptocurrency’s short supply and deflationary nature, making it a long-term investment asset.
