Why the Bitcoin halving will be different this time
Last Updated on 8 April 2024 by CryptoTips.eu
It’s 2024 and so we’re counting down to already the fourth Bitcoin halving. The previous three resulted in a higher Bitcoin price, and this time analysts expect the largest digital coin to surprise everyone.
This is mainly due to one important difference. Allow us to explain.
What is the halving?
To emphasize Bitcoin’s anti-inflationary personality, Satoshi Nakamoto, the anonymous inventor of the original cryptocurrency, built in a ‘halving’ that halves the reward for Bitcoin miners. He thought this would highlight Bitcoin’s scarcity and thus drive the price upward. So far he has been right.
The first halving – 2012
During the very first halving, in 2012, Bitcoin was still a relatively unknown mechanical novelty that only software developers had heard of. A teenager named VItalik Buterin wrote an article about that halving and the price of Bitcoin rose from $12 (April 2012) to $229 (April 2013) about a year later. Some six months after that, Bitcoin traded above $1,000 for the first time.
The second halving – 2016
In 2016, Bitcoin was slightly better known and already had a lot more fans. Mt Gox had recently been hacked and Vitalik launched Ether. The price of Bitcoin rose steadily after the second halving and a year later the first major bull run began, the one of 2017 and 2018, when Bitcoin touched $20,000 for the first time and the young South Koreans and Japanese went all in.
The third halving – 2020
In 2020, we were confronted with Covid just before the halving and the Bitcoin price fell just like the stock markets in March of that year, when the first Covid cases were recorded in the United States.
Bitcoin started the halving at a price of around $8,000 and then rose to a high of $69,000 in November the following year.
The fourth halving – 2024
This time will of course be different, because the inflow of fresh money into the crypto market (because of the listings of Bitcoin ETFs on the American stock exchanges) has meant that Bitcoin set a new record before the halving even takes place.
If the logic of the previous halvings is respected, we would normally end up with a price of around $280,000. So clearly something to look forward to.
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