As the Bitcoin halving approaches on April 20, Bitwise Asset Management sheds light on historical trends, suggesting that the crypto market might be underestimating the event's long-term impact.

According to Bitwise, past Bitcoin halvings have been followed by relatively lackluster price action in the immediate month following the event. However, in the subsequent year, Bitcoin has witnessed substantial gains, often reaching triple-digit percentage points.

In the aftermath of the 2012 halving, Bitcoin experienced a modest 9% gain in the first month. Yet, over the following year, its price skyrocketed by a staggering 8,839%.

Similarly, after the 2016 halving, Bitcoin saw a 10% decline in the month following the event. However, in the subsequent year, it surged by 285%, ultimately reaching its historic peak of $20,000 in 2017. The pattern repeated itself in 2020, with a 6% post-halving gain followed by a remarkable 548% pump in the year after.

Bitwise emphasizes that while the market appears to factor in the short-term impact of the halving, it often overlooks or underestimates the long-term implications. This intriguing pattern suggests that the true impact of the halving may not fully manifest until well after the event has occurred.

Notably, this market cycle marks the first time that Bitcoin has reached an all-time high prior to its halving. Despite hitting a peak of $73,679 on March 13, Bitcoin has since corrected by 16%, dropping to a low of $61,500.

Short-term pessimism looms among industry insiders, with predictions of a potential $5-billion miner sell-off post-halving, exerting downward pressure on markets. Marathon CEO Fred Thiel suggests that the anticipated halving rally may have already been factored into the current market dynamics.

Market analysts highlight recent correction magnitudes, with significant pullbacks ranging from 18% to 23%. Currently, markets have corrected by 16%, prompting speculation of further declines. Analysts caution that 30% corrections, while not uncommon, could potentially see Bitcoin prices fall to around $51,000.

As the crypto community awaits the imminent halving, anticipation and uncertainty loom large, with investors closely monitoring market movements for clues about Bitcoin's future trajectory.