28/11/2024
12 years ago, the first Bitcoin halving marked the beginning of Bitcoin’s deflationary cycle. Since then, each halving has had a significant impact on the cryptocurrency market. The next halving, expected in April 2028, will reduce the block reward from 3.125 BTC to 1.5625 BTC.
Historically, Bitcoin’s price has experienced substantial growth following halvings due to the reduced supply entering the market and increased investor interest. However, predicting Bitcoin’s price after the next halving involves several factors:
Historical Context
1. 2012 Halving
- Block reward: Reduced from 50 BTC to 25 BTC.
- Bitcoin price pre-halving: ~$12
- Peak price after halving: ~$1,100 (2013)
2. 2016 Halving
- Block reward: Reduced from 25 BTC to 12.5 BTC.
- Bitcoin price pre-halving: ~$650
- Peak price after halving: ~$19,000 (2017)
3. 2020 Halving
- Block reward: Reduced from 12.5 BTC to 6.25 BTC.
- Bitcoin price pre-halving: ~$8,500
- Peak price after halving: ~$69,000 (2021)
Each halving triggered a supply shock and was followed by a bull market within 12-18 months.