With only a few weeks left until the completion of the fourth halving in BTC's history, crypto analysts, experts, and commentators are rushing to weigh in on what will and will happen in the coming months. states.
History has shown that the price of Bitcoin has reacted very positively during cycles starting with halvings, which is to be expected given the impact on the network. After all, the production of new he BTC will be cut in half, and if the demand for Bitcoin decreases, the price should also rise, as the asset remains the same or increases.
The first halving took place in late November 2012, reducing the production rate from 50 BTC to 25 BTC per block. According to a tweet from Mags, a popular cryptocurrency analyst, the price of cryptocurrencies was extremely low on the day of the event. However, the ensuing months were followed by a massive bull run, resulting in a 9,500% rise (from $12 to $1,166) in just over a year.
The next time, in early July 2016, the block reward was further reduced by 50% to 12.5 BTC. Bitcoin prices were also calm on the day of the event, but fell by nearly 30% in the first week.
That didn't last long, as the largest cryptocurrency rose again over the next 500 days, soaring 4,100% from $470 to a then-high of nearly $20,000.
The third halving occurred on May 11, 2020, immediately after the collapse due to the new coronavirus infection. BTC was skyrocketing at the time, dropping about 17% in the days leading up to the event.
The ensuing bull market did not begin immediately, but once it rebounded, the price of BTC skyrocketed from around $8,700 to its November 2021 ATH of $69,000 (700%).
What will be different about the upcoming fourth halving is that Bitcoin has already hit new all-time highs, hitting a new high of just under $74,000 in early March. Still, it will be interesting to track the price movements of the asset in the coming weeks, on the day of the event, and, of course, in the subsequent months.
Some forecasts predict the price for this cycle to be around $200,000. If you would like to see strategies that are highly profitable to employ before and after each halving, click here.
