Crypto:
30251
Bitcoin:
$66.191
% 0.73
BTC Dominance:
%54.5
% 0.21
Market Cap:
$2.38 T
% 1.77
Fear & Greed:
74 / 100
Bitcoin:
$ 66.191
BTC Dominance:
% 54.5
Market Cap:
$2.38 T

Bitcoin Halving: Historical Patterns Hint at Future Gains

Bitcoin,Btc

While it is only a matter of a couple of weeks before Bitcoin halving reaches a date scheduled for the end of April 2020, Bitwise Asset Management comes up with historical trends to show that there is a chance of a bright future for the cryptocurrency market in spite of some fall.

Past Performance, Future Potential

As reported by Bitwise, there were cases of price action remaining flat for a period of time after past Bitcoin halvings. Nonetheless, exactly the following year reveals a different story all together. “Data is lacking, but the picture is presenting an interesting one,” Bitwise stated in an April 16 post. Despite initial falls that came in during the year following the halving, Bitcoin has proven to be a very profitable asset, almost always reaching double-digit percentage increases in the year it is being halved.

In 2012, the aftermath of Bitcoin’s halving event resulted in a 9% price increase in the following month. Meanwhile, in the next year, it reached an almost unbelievable figure of 8,839% growth. Also, the Bitcoin price contracted 10% after the 2016 halving began. Nevertheless, it subsequently attained a commendable growth of 285%, reaching $20,000 in 2017. The last halving in 2020 initially saw a nominal price increase of only 6%, but the following year saw a strong surge of 548%.

“The market reacts to the short-term effect of the halving while neglecting the long-term effect,” argued Bitwise.

This time, though, the storyline is a little bit looped. In Bitcoin’s history, the digital currency peaked before the forthcoming halving event. The cryptocurrency closed the day at an impressive price of $73,679, experiencing a correction of 16% a day later, closing at $61,500.

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Market Sentiments and Predictions

Opinions on halving influence market attitudes, which are split. As the head of research at 10x Research, Markus Thielen pointed out that this might result in a $5 billion miner sell-off after the halving event, which, in turn, may put downward pressure on the markets. Additionally, Marathon CEO Fred Thiel pointed out that current prices may have already factored in the surge ahead of the halving, potentially pushing the post-halving surge forward.

In addition to these, Bitcoin’s historical performance indicates that the asset may continue to rise, and it is likely that its gains will be noticeable following the halving event in the upcoming year.

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