The upcoming halving of bitcoin, expected to occur in April, is drawing attention from investors. This event has historically resulted in significant price increases for the cryptocurrency. Bitcoin, which is currently trading around $52,000, has already seen a 20% gain this year and a 150% gain in 2020. However, it is still down 25% from its record high of $68,990 in 2021.
Analysts are optimistic that the next halving will drive bitcoin to a new all-time high. This halving is a part of the blockchain algorithm and is designed to control the supply of bitcoin, which is capped at 21 million. It occurs every 210,000 blocks, approximately every four years, until the maximum supply is released.
The next halving is expected to take place on April 19, although the exact date may change. According to Swan Bitcoin, the block reward for bitcoin mining will be reduced from 6.25 to 3.125 bitcoins. This will be the fourth halving in bitcoin’s history, and each one has led to a rally in the months following the event.
The first halving occurred on November 28, 2012, when bitcoin was trading at around $12. Within a year, it had risen to $964. Similarly, the second halving, which took place on July 9, 2016, saw bitcoin trading at $640 and rising 40% in the following six months. One year later, it had gained a massive 296%, reaching a peak of $19,752 on December 17, 2017.
The third halving, which occurred on May 11, 2020, saw bitcoin trading at around $8,750. In the six months following the halving, it gained 79.7%, and one year later, it had risen 547.7%. On November 10, 2021, bitcoin reached its all-time high of $68,990.90.
In summary, investors are anticipating a price surge for bitcoin following the upcoming halving, which has historically been the case. With its limited supply and growing demand, bitcoin’s value is expected to continue to rise in the future.
