April 2024 is a big month for the blockchain community as it marks another eventful Bitcoin halving. Bitcoin halving is a day when the reward of Bitcoin mining is cut into half, hence the term Bitcoin halving.

Bitcoin halving happens once every 4 years. It first happened in 2012, then 2016, 2020 and now 2024. The 2024 Bitcoin having is estimated to happen on April 19th/20th. But how has Bitcoin performed after halving in the past? What should you expect after Bitcoin halves this April?

This article will help you get answers

Highlights

Bitcoin halving divides the current miners reward into two
Bitcoin halving happens every 4 years
Bitcoin halving reducing the circulating supply of Bitcoin
Bitcoin halving cause scarcity for Bitcoin, thus boosting its market value
Price expectations for Bitcoin is usually high after Bitcoin halving

What happens after Bitcoin halving

When Bitcoin halving occurs, the reward that miners receive after mining Bitcoin is cut into two. This is a mechanism that Bitcoin blockchain deploys to ensure Bitcoin scarcity over time while increasing its market value.

After the halving period, the price of Bicton is usually expected to surge due to scarcity.

Bitcoin Price action after halving.

Investors usually expect a pump in bitcoin price after Halving. However the history of Bitcoin halving has revealed that certain events influence bitcoin price action thus determining its direction.

For example in 2012, Bitcoin suffered low valuation before the Bitcoin halving. So the news of the halving spotlighted Bitcoin, thus drawing attention of new investors hence the surge 100 days after the halving. Bitcoin went from $12 to $44 within 100 days.

In 2016, the price of Bitcoin went lower from $658 to $640, 100 days after the halving, which failed investors' expectations. However the price surged significantly much later.

In 2020, there was heavy capital inflow into the economy due to the covid-19 relief programme across the globe. There were huge investments into stocks and cryptocurrency. This period influenced the positive outcome after the 2020 bitcoin halving. Bitcoin rose from $8601 to $11,748 within 100 days.

This is 2024 and we have already seen a very impressive performance from Bitcoin so far. Bitcoin has almost reached a new all time high.

The context here is that investors' expectations are very high and Bitcoin has already been priced high since early 2024. We are likely not to see a significant gain right after the Bitcoin halving this year. However, the market would see a big move after the market is saturated.

What are your thoughts? share in the comment section.