The Bitcoin halving is best defined as an automated event on the Bitcoin blockchain, which slows down the rate at which new Bitcoins are mined, by half. The difficulty since the 2020 halving was set to 6.25BTC per block mined, which will now be reduced to 3.125 BTC.
How will the halving direct the Bitcoin and Altcoins markets?
Looking back at past halvings its fair to say that there is no instant price increase or decrease during these events. Its possible that the price of Bitcoin will slightly decrease before the halving takes place as some holders decide to not take any chances, thus withdraw or convert Bitcoin prior to the block difficulty increase. What’s more interesting, are the events set to come within a few months or within a year of this increase taking place. During the past 3 halving cycles, the digital asset’s price has within a 6 month range past halving, increased rapidly and multiple times.
Year | Price at halving | Within 6 Months |
2012 | 10$ | 1000% Increase |
2016 | 650$ | 200% Increase |
2020 | 9000$ | 600% Increase |
One could only speculate, whether or not the price will increase rapidly after this years halving. For a long-term Bitcoin Price Prediction click here.
This article was made for informational purposes, one should always do their own due diligence and act accordingly to own boundaries.