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Bitcoin did not recover much after the “halving”. Will the next step be $100,000?
A month later Bitcoinit’s big halving eventpeople in the crypto community want to know where the leading cryptocurrency is going.
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The last one Bitcoin halving – a technical event that halves the reward for mining new Bitcoin – occurred on April 19-20, which split the reward from 6.25 Bitcoin to 3.125. Bitcoin halving, a feature aimed at ensuring the cryptocurrency’s scarcity and safeguarding it from inflation, occurs every four years.
Right now, Bitcoin’s value is hovering around $65,000 and is mostly in the green because inflation has subsided and the stock market is bullish. Bitcoin has not seen notable jumps since the halving process and currently sits around 12% below its record high of $73,803 set in March; it’s still up about 140% over the past year. But historically, Bitcoin jumped after the halving event.
The first Bitcoin halving It happened in November 2012, when the reward for mining a block was reduced from 50 Bitcoins to 25. At that time, the price of Bitcoin was 12 dollars. It rose to $44 in 100 days and then to $135 in 300 days. The second halving occurred in July 2016, when the reward was reduced from 25 Bitcoin to 12.5. The flagship cryptocurrency went from $658 to $1,551 in 300 days. At the third halving in May 2020, the Bitcoin incentive was cut in half to 6.25 Bitcoin. At the time, Bitcoin was at $8,601, rising to $50,941 in 300 days.
Steven LubkaCEO of financial services company Bitcoin Swan Bitcoin, seems optimistic about the growth of the leading cryptocurrency. In an email, you wrote that Bitcoin’s performance saw a huge boost before the halving, which historically has not happened. “Bitcoin has never seen a sharp increase after the halving; it generally occurs month by month as time goes by,” she said.
Rennick Palley, founding partner of the crypto venture capital company Stratosadds that in the next 12 months following the halving, Bitcoin will likely continue its upward price movement.
So why is this year’s halving different from its predecessors? It’s mainly because Bitcoin reached its peak a month earlier, making it difficult to maintain the same momentum. Furthermore, experts add, the mainstream adoption of Bitcoin and the launch of Spot Bitcoin ETF the factors that influence the price movement of the main cryptocurrency have changed.
According to Palley, the price of Bitcoin is now largely determined by the dynamics and adoption of global liquidity. “As fiat money continues to be printed and more people around the world recognize the value of Bitcoin as a store of value, the price of Bitcoin in dollar terms will continue to rise,” she said.
Many will continue to be surprised by changes in Bitcoin’s dynamics, but analysts say they won’t be surprised if the flagship cryptocurrency crosses the $100,000 mark this year. “It’s always difficult to predict an exact time frame, but I expect six-figure Bitcoin on the horizon,” Lubka said.
CoinGecko, a cryptocurrency tracking website, notes that the price of Bitcoin increased by 96.302% since 2013.