In anticipation of the fourth Bitcoin halving scheduled for mid-April, Coinbase Institutional has released a primer for investors.

The Bitcoin halving, occurring either every four years or upon the completion of mining 210,000 blocks, will witness a reduction in miner rewards from 6.25 to 3.125 bitcoins per block once the 840,000th block is reached.

This document seeks to offer guidance to institutional investors by examining the impact of past halving events and integrating recent developments in the cryptocurrency market, such as the introduction of Bitcoin ETFs and Bitcoin's unprecedented surge before the halving.

Historically, Bitcoin has undergone substantial valuation increases in the months following previous halvings. The initial halving resulted in a remarkable surge in Bitcoin's value, with a 139% increase in the six months leading to the event and a staggering 923% rise in the subsequent six months. Although subsequent halvings haven't seen such drastic spikes, a consistent pattern of post-halving appreciation has been observed.

Coinbase analysts emphasize the unique circumstances surrounding the upcoming halving, highlighting Bitcoin's 157% surge since October and suggesting the potential for further growth.

"While there's a possibility that the halving could positively impact Bitcoin's performance, the historical evidence supporting this relationship is limited, making it somewhat speculative," explained the company's analysts.

The report also takes into account macroeconomic factors like potential Federal Reserve rate cuts, which could affect Bitcoin's trajectory. Additionally, it considers the behavior of long-term holders, identified by Glassnode as investors who hold for at least 155 days, who historically tend to refrain from selling in response to halvings.

The document also acknowledges potential challenges, including the likelihood of increased selling pressure from miners adjusting to reduced rewards and companies navigating bankruptcy proceedings.