- Bitcoin’s price has seen little movement in the month after past halvings, but significant gains in the year following
- The current market cycle is the first time Bitcoin hit an all-time high before its halving
- Market analysts predict potential short-term selling pressure and corrections after the upcoming Bitcoin halving
The Bitcoin halving is one of the most anticipated events in the crypto market. With the next halving just days away, many are wondering how it will impact Bitcoin’s price. Historical data shows that while price action is muted in the month after halvings, significant gains follow in the year after.
Bitcoin’s Price Performance After Previous Halvings
2012 Halving
In the month after the 2012 halving, Bitcoin gained 9%. However, over the next year, it surged 8,839%.
2016 Halving
After the 2016 halving, Bitcoin fell 10% the following month. But in the year after, it gained 285% to peak at $20,000 in 2017.
2020 Halving
Following the 2020 halving, Bitcoin saw a 6% price gain in the month post-halving. It then pumped 548% in the year that followed.
Key Takeaways
- Bitcoin’s price tends to move little in the month after halvings.
- But in the year after halvings, Bitcoin has historically seen triple digit percentage gains.
- The data shows that the market underestimates the long-term impact of halvings.
Market Sentiment for This Halving
This is the first halving where Bitcoin hit an all-time high beforehand. After peaking at $69,000 in November 2021, Bitcoin has since corrected 16% to around $64,400.
Some industry leaders predict further short-term weakness. But historically, halvings have preceded Bitcoin’s most parabolic bull runs. If past patterns repeat, significant gains could follow in 2023 and beyond.
Conclusion
Halvings cut Bitcoin’s supply issuance in half. With demand outpacing new supply, economists predict the resulting supply shock will drive Bitcoin’s price higher.
While expectations are muted for April and May, Bitcoin’s strong post-halving performance in past cycles suggests sizable gains may lie ahead. As we approach halving day, the data shows it’s the long-term impact that could be underestimated.
