Part 2/12:
Historically, Bitcoin has experienced significant bull markets and subsequent corrections roughly aligned with its halving events, which occur approximately every four years. The first major bull run exploded in 2013, followed by another in 2017, and a third in 2021. Correspondingly, bear markets also followed at similar intervals. This pattern caused a lot of traders to develop a sanguine expectation: that the halving directly causes the boom-bust cycle.
The reasoning hinged on Bitcoin's emission schedule: every four years, the reward for mining a block is cut in half—from 50 to 25 Bitcoin, then down to 12.5, 6.25, and so on. The narrative was that decreasing supply pressure should naturally inflate prices, especially in the early stages of Bitcoin’s life.