Image Source
Hi everybody!
In the chart above the previous 3 halvings can be observed.
It's a little out of date (since January 2024) but nevertheless it predicts a long road ahead for the bitcoin bull run, before the bear market that will last for 52 bars(364 days).
We are currently in the middle of the 156 bars (1095 days) of a bull run.
Looking back at historical price movements, dramatic price increases have followed after each halving event.
Halving #1: 9,520% rise over the following 365 days.
Halving #2: 3,402% rise over the following 518 days.
Halving #3: 652% rise over the following 335 days.
From this, the mean average time before prices peak after a halving is around 406 days
What is the Bitcoin halving?
The Bitcoin halving means that miners receive fewer bitcoins as reward for each block mined after the halving date — half of what they currently get, to be precise. Don’t worry, though; this is by design.
You might be wondering, "How will it affect crypto and the bitcoins I hold?" It's a great question. The answer is: Relax — the halving won't directly impact any of your existing bitcoin holdings.
The halving simply reduces the reward that miners receive for mining blocks by 50%.
Halvings are an important feature baked into the Bitcoin blockchain. As a part of the network’s "monetary policy", they slow down the rate at which new bitcoins enter the network, with halvings occurring roughly every four years.
While cutting rewards might sound daunting, it's actually a pretty clever mechanism designed to create stability within the Bitcoin network.
How does the halving affect Bitcoin?
The halving aims to counteract inflation in the network. The laws of supply and demand tell us that creating millions of bitcoins today would make the existing ones worth less. Reducing the available supply of bitcoin aims to prevent this from happening. Pretty neat, eh?
Here’s a quick look at the Bitcoin prices around the three previous halvings.
Halving #1:
Date: November 28, 2012
Price at time of halving: $13
365 days later: $979
Halving #2:
Date: July 9, 2016
Price at time of halving: $664
365 days later: $2,519
Halving #3:
Date: May 11, 2020
Price at time of halving: $9,734
365 days later: $55,901
Halving #4:
In 7 days.
Thank you for your time,
Sorin.