The final countdown to Bitcoin halving, you need to know this! (II)

Historical halving and its impact

Bitcoin has experienced three halvings in history. The miner reward was reduced from 50 BTC per block to 25 BTC in 2012, and then to 12.5 BTC in 2016. The last halving was on May 11, 2020, when it was reduced to 6.25 BTC. After each halving of Bitcoin, the price rose rapidly and reached a record high.

First halving: November 28, 2012

Bitcoin block number halved: 210,000

Block reward: 50 BTC to 25 BTC

Bitcoin price on the day of halving: $12.3 per coin

Price peak during this cycle: $1,175 per coin

Maximum price increase during this cycle: 9552.85%

Second halving: July 9, 2016

Bitcoin block number halved: 420,000

Block reward: 25 BTC to 12.5 BTC

Bitcoin price on the day of halving: $648 .1 USD/coin

Price peak during this cycle: $19,800/coin

Maximum price increase during this cycle: 3055.08%

Third halving: May 2020

Bitcoin block with halving: 630,000

Block reward: 12.5 BTC to 6.25 BTC

Bitcoin price on the day of halving: $8,560.6/coin

Price peak during this cycle: $67,775.3/coin

Maximum price increase during this cycle: 791.71%

Is there a risk with Bitcoin halving?

While Bitcoin halving is generally viewed as a positive event, there are inherent risks, especially in the short term. The anticipation of halving may trigger speculative market behavior, leading to increased volatility. It is worth noting that if market expectations are not met, prices may also experience temporary adjustments.

There is a historical correlation between halving events and Bitcoin prices, for example, Bitcoin prices rose sharply approximately six months after the halving dates in 2012, 2017, and 2020. Despite this correlation, it is important to remember that correlation does not imply causation, and history does not necessarily repeat itself. Various factors such as market sentiment, adoption trends, and macroeconomic conditions can influence price movements.

Here are some of my thoughts on Bitcoin halving