Bitcoin Countdown: 100 Days Until the Halving Sparks Anticipation and Analysis

As we step into 2024, the crypto sphere buzzes with anticipation as the countdown begins for Bitcoin’s upcoming halving event, just a mere 100 days away. After a bearish 2022, the year 2023 marked a resurgence for the leading cryptocurrency, witnessing a 154% surge in Bitcoin’s value, though overshadowed by the outperformance of various higher beta tokens.

While the impending launch of Bitcoin’s spot ETF has dominated headlines, an imminent value driver looms large even before the ETF’s debut: the much-discussed April halving.

Scheduled every four years, the halving plays a pivotal role in maintaining Bitcoin’s scarcity, capping its maximum supply at 21 million native units. As of January 2023, the available supply of Bitcoin stood at 19.59 million units.

Source: CryptoQuant

The essence of halving lies in its literal halving of the block reward distributed to miners. In 2020, the reward plummeted from 12.5 to 6.25 Bitcoin units. The forthcoming 2024 halving will further slash this reward to 3.125 units.

Reflecting on history, the price surge between halving events underscores their influence on Bitcoin’s value. Following the 2016 halving, Bitcoin’s spot price soared by a staggering 1263% before the subsequent 2020 halving.

An intriguing metric to observe is the surge in Bitcoin’s spot price between the halving event and the subsequent all-time high (ATH). Post the 2020 halving, Bitcoin experienced a remarkable 654% ascent.

Rewinding further, historical data reveals the substantial impact of halving events on Bitcoin’s value trajectory. Between the 2012 and 2016 halvings, the price catapulted by a monumental 5187%. Similarly, following the 2016 halving, Bitcoin’s spot price surged by an impressive 2922%.

Crucially, these halving events often serve as catalysts for price surges, sparking bullish momentum both before and after the event, drawing attention from institutional players.

Enter MicroStrategy (MSTR), a notable player in the crypto investment arena. Their Bitcoin acquisitions soared to 56,650 bitcoins in the ongoing year, a substantial leap from the modest 8,109 units in 2022. Notably, MSTR has strategically ramped up its purchases leading up to the April halving, indicative of institutional interest and confidence in Bitcoin’s trajectory post-halving.

As the countdown to April’s halving ticks away, the crypto community is brimming with expectations, drawing insights from historical patterns and institutional movements, eager to witness how this pivotal event will shape Bitcoin’s journey in the year ahead.

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