July 29 marks a significant milestone for Bitcoin, as it reaches the 100-day mark since the blockchain's per-block mining rewards were reduced to 3.125 BTC from 6.25 BTC. This event, known as the Bitcoin halving, occurs every four years and aims to control the supply of Bitcoin by reducing the reward miners receive for validating transactions by 50 percent.

Historical data suggests that the bullish impact of the halving typically takes effect after 100 days, leading to significant price rallies. The primary objective of the halving is to manage the pace at which Bitcoin's supply limit of 21 million is approached, ensuring its scarcity over time. Previous halvings have led to substantial price increases, with most gains occurring after the first 100 days.

Andre Dragosch, head of research at ETC Group, notes that the market tends to have a short memory, but the halving-induced supply deficit should start taking effect from now on. Dragosch's conclusion is based on performance data before and after the previous three halvings in 2012, 2016, and 2020. The study revealed that the mean excess performance increases significantly 100 days after the halving and becomes statistically significant, with T-values exceeding 2%.

The data shows that the mean excess performance rises above 100% from the 100th day after the halving and eventually peaks into four figures. While it remains to be seen if history will repeat itself, the 100-day milestone marks a critical turning point for Bitcoin's price rallies. As the supply deficit takes effect, investors and analysts will be closely watching Bitcoin's performance in the coming months.

The Bitcoin halving's impact on the cryptocurrency's price has been a topic of interest for investors and analysts. With the 100-day milestone reached, the focus shifts to whether the historical trend of price rallies will continue. As the market navigates this critical period, one thing is clear - the Bitcoin halving's influence on the cryptocurrency's supply and price cannot be ignored.