The cryptocurrency market is recovering after a year of “winter” conditions. Bitcoin It decreases with the expectation of a movement in the price. The most important reason for this easing is the “halving” event, which is expected to take place in April.
Notably, the upcoming halving is expected to occur in April 2024. Following the halving, Bitcoin miners’ rewards will be reduced from the current 6.25 BTC per block to 3,125 BTC.
4 Things to Know Before Bitcoin Halving
As we approach the projected halving date of April 2024, leading market analyst Ali Martinez highlighted four key points that investors should consider while waiting for this event.
As we approach the #BitcoinHalving in April 2024, here are four key points to consider:
NEWS CONTINUES BELOW1⃣Post-halving corrections: After the 2016 and 2020 halvings, #BTC experienced corrections of 30% and 7% within a month.
2⃣Significant post-halving rallies: Following the 2012, 2016, and 2020… pic.twitter.com/aaJpJcZtAm— Ali (@ali_charts) January 31, 2024
NEWS CONTINUES BELOW
Historically, Bitcoin halving has been viewed as a bullish event and is followed by a significant increase in BTC price. The main reason for this is the decrease in new supply to the market in the face of increasing demand.
Before this price increase, Martinez pointed out that Bitcoin recorded major corrections within a month after the 2016 and 2020 halvings. According to Martinez, the BTC price dropped 30% within a month after the 2016 halving. Similarly, BTC fell 7% within a month after the 2020 halving.
According to Martinez, the post-halving drop is usually followed by a large increase in Bitcoin price. The analyst specifically stated that after the 2012, 2016 and 2020 halvings, the Bitcoin price increased by 11,000%, 2,850% and 700% respectively.
Many analysts made bullish predictions for the Bitcoin price ahead of the halving, with many predicting that the asset would rise above $100,000 after the event.
There is a trend that every Bitcoin Halving event usually brings a bull market. Martinez said that after the 2012, 2016 and 2020 halvings, the bull market that accompanied these events lasted 365 days, 518 days and 549 days, respectively.
Martinez also stated that if the upcoming bull market follows historical trends, Bitcoin could reach its all-time high (ATH) around April or October 2025.
Notably, Bitcoin’s ATH of $69,044 was recorded on November 10, 2021, 18 months after the 2020 halving.