The Bitcoin halving is an event that happens approximately every four years and means that the reward for producing new blocks on the Bitcoin network is halved.
Bitcoin's 4th Halving Will Happen in 2024
The halving is designed to control inflation and limit the number of Bitcoins in circulation to 21 million.
Since the fourth halving is scheduled to occur in 2024, there is a lot of speculation about how this will affect the Bitcoin price.
However, although history shows that the Bitcoin price did not move in a completely predictable way before or after the halving, it can be said that this event directly affected the price.
For this reason, there is a lot of anticipation and excitement before and after the halving about how the halving will affect the Bitcoin price.
But the truth is that Bitcoin price does not always follow a predictable pattern. For example, during the first halving in 2012, the price of Bitcoin was only $12 before the halving and rose to $230 within a year after the event.
However, during the second halving in 2016, the price of Bitcoin rose from $ 658 to $ 2,500 in a year, and then fell back to around $ 1,000.
CZ Received a Statement on the Subject
Before & after the halving, you will hear a lot of "why didn't the price move (everyday)?"#bitcoin price:
1st halving, 2012 Nov: $12
2nd halving, 2016 Jul: $658
3rd halving, 2020 May: $8,800
4th 2024: …History does NOT predict the future. But zoom out… https://t.co/979tpNq9kf
— CZ 🔶 Binance (@cz_binance) April 20, 2023
CZ, the CEO of the world's largest cryptocurrency exchange, also tweeted on the subject.
Cz tweeted:
"Before and after the halving, "why didn't the price move (everyday)?" You will hear the question a lot.
Bitcoin price:
- halving, November 2012: $12
- halving, July 2016: $658
- halving, May 2020: $8,800
- 2024: …
History does not predict the future. “But it gives an idea about it.”
The important point here is that there is no guarantee that the Bitcoin price will increase after the halving and investors should be cautious about making predictions based on past events.
While the halving may affect Bitcoin supply and demand, other factors such as regulatory changes, market sentiment and adoption rates can also play a significant role in Bitcoin price.
*Not investment advice.
