$BTC BITCOIN HAVING EFFECTS THE MARKET.

How Bitcoin Halving Affects the Market: Hype vs Reality

Bitcoin halving is perhaps the most highly anticipated event in the world of crypto. It happens roughly every four years, reducing the block reward for miners by half. It may sound like a dry technical tweak, but its effects resonate throughout the entire crypto ecosystem. But how much of this is actual, and how much is hype?

• What is Bitcoin Halving?

Bitcoin halving reduces the number of bitcoins rewarded to miners by 50%. For example, in the most recent halving (2024), the reward dropped from 6.25 BTC to 3.125 BTC per block. This process continues until the maximum supply of 21 million BTC is mined.

The purpose? To maintain scarcity and reduce inflation, mimicking the limited nature of precious assets like gold.

•The Hype: Price Boom Expectations

Every halving is preceded by unprecedented hype. Historically, halvings have been preceded by bull runs:

2012 Halving → Price surged from ~$12 to more than $1,000 in 2013.

2016 Halving → Price increased from ~$650 to ~$20,000 by the end of 2017.

2020 Halving → Price surged from ~$8,000 to an all-time high of $69,000 in 2021.

This trend has made many think that halvings are a sure-fire ticket to profit.

•The Reality: It's Not That Simple

Historical trends may favor a bullish trend, but it is not a given:

*Market maturity: Institutional investors, regulation, and global events contribute significantly more to price action than before.

Delayed impact: Price accelerations tend to occur months after the halving, rather than straight away.

Sell the news effect: Prices occasionally dip immediately following the halving from overexuberant expectations.

Also, miners experience more pressure after halving as profits fall. Only efficient miners remain active, resulting in short-term network adjustments.

•Should You Buy Bitcoin Around Halving?

Halving does influence supply, and that can push prices up—if demand remains firm or increases. But market timing based on halving alone is dangerous