In history, as the supply tightens and demand remains stable or grows, the price of Bitcoin tends to reach new heights in the period following a halving.
With only 1 day left until the fourth Bitcoin halving, the block reward will decrease to 3.125 BTC.
Bitcoin Halving and Historical Bottom Patterns
It is well known that Bitcoin halving is a predetermined event embedded in the Bitcoin protocol, which reduces the mining reward for new blocks by 50%. Looking back, since its inception in 2009, Bitcoin has experienced three halving events. The first halving occurred in November 2012, when the reward for mining a block decreased from 50 BTC to 25 BTC. The second halving took place in July 2016, further reducing the block reward to 12.5 BTC. In May 2020, Bitcoin welcomed its third halving, reducing the mining reward to 6.25 BTC.
Market participants typically view Bitcoin halving as a precursor to a bull market, as it reduces the rate of new Bitcoin generation, effectively slowing down the influx of new Bitcoin into the market. Historically, as the supply tightens and demand remains stable or grows, the price of Bitcoin tends to reach new heights in the period following a halving.
According to a report from the crypto investment company 21Shares, Bitcoin has performed very well in the 12 months following a halving. On average, Bitcoin takes 172 days to surpass the previous all-time high (ATH) value after a halving, and 308 days to reach a new cycle peak after surpassing the ATH.
Unlike the previous three halvings, as Bitcoin gradually approaches the next halving event, subtle changes in market structure and participant behavior reveal a complex trading landscape. The introduction of new institutional demand and capital inflows into the Bitcoin network through Bitcoin spot ETFs has led to Bitcoin breaking the previous cycle's ATH before the halving.
Market Volatility: Time to Build Positions
However, just before the halving, the market experienced an unexpected sharp decline. From April 12th to 14th, influenced by factors such as deteriorating international geopolitical situations and diminishing expectations of a Fed rate cut, the crypto market saw increased risk aversion.
Coingecko data shows that the overall market capitalization of cryptocurrencies once fell below $2.5 trillion, with BTC dropping below $61,000, ETH dropping below $2,800, and SOL dropping below $120. Altcoins experienced even more dramatic pullbacks, with popular coins like MATIC, XRP, DOGE, and BCH all seeing declines of over 30%, and the previously hot MEME coin BOME experiencing a drop of over 50%.
Despite the current market uncertainty, many investors and analysts remain optimistic about the long-term prospects of cryptocurrencies. They believe that this price adjustment may provide a good entry point for long-term investors.
In its latest report, Matrixport stated that some believe we may be on the verge of an altcoin rebound. While a few meme coins and altcoins have experienced significant rebounds, the broader uptrend may still be in its early stages based on Bitcoin's market dominance, indicating that this bull market cycle is very narrow, with Bitcoin gaining more market share.
Renowned trader GCR posted on social media, "If you have been sidelined, this is a good opportunity to increase your holdings in tokens you believe in; if you are already fully invested, then stick to it, hold onto your spot positions and do not surrender; someone once said that liquidation is the process of transferring wealth from leveraged traders who need it to wealthy spot buyers."
Fierce Competition: Platform and Tool Selection is Key
It is worth considering that as Bitcoin becomes widely accepted, the competition among cryptocurrency exchanges has become increasingly fierce, posing a challenge for investors in selecting the best solution from numerous platforms and financial tools. With 10 years of secure operation experience and having experienced two Bitcoin halvings, Huobi HT may be a good choice. Additionally, its introduction of fee-free trading for BTC is a "remedy" for the tightening times.
Trading mining is an exclusive benefit prepared by Huobi HTX for users, where trading designated currency pairs allows users to share corresponding prize pools. At the same time, the net trading fees generated by trading pairs will be fully used for HTX repurchase and 100% destruction to support the stable growth of HTX value.
Currently, Huobi HTX periodically opens BTC/USDT spot and contract trading mining activities to all users. To participate in spot trading mining, users need to have a rocket value greater than 300 and successfully sign up on the activity page. To participate in contract trading mining, users need to have contract account assets ≥10 USDT (excluding contract trial funds) and click the "Sign Up Now" button. Users participating in either activity can enjoy fee-free trading and have the opportunity to share a total daily reward of 200,000 USDT.
Indeed, each Bitcoin halving represents a fundamental shift in the crypto industry, with profound effects on adoption and market evolution. In addition to its direct impact on prices and investor sentiment, Bitcoin halving also promotes more institutional and retail interest and participation in Bitcoin. As an important participant in the industry and a witness to change, Huobi HTX will continue to explore the wider application of cryptocurrencies and provide users with secure and diverse financial tools, enhance the trading experience, and witness the next cycle of Bitcoin and cryptocurrencies together.
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